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Stocks back to green after two weeks

cseStocks went back to the green last week that ended on Thursday after two weeks’ losing streak, powered by the investors’ buying spree despite pre-polls unrest.

The market witnessed four trading sessions, like previous two weeks as market remained closed on Tuesday due to Bank Holiday. The market closed all four trading sessions positively amid positive expectations in investors’ mind in New Year with new hope.

Week-on-week, the prime index of Dhaka Stock Exchange -DSEX–went up by 113.13 points or 2.69 per cent to close the week at 4,314.09 points, peaking at 3-week high level.

The DS30 index, the blue chip stocks, outperformed the market with gaining 57.13 points or 3.95 per cent and closed the week at 1,505.08 points.

The Chittagong Stock Exchange (CSE) also ended higher after two weeks, with its Selective Categories Index – CSCX-gaining 224.36 points or 5.27 per cent to close the week at 8,414.09 points.

The market witnessed sluggish trading throughout the week. The total turnover on DSE came down to Tk 14.28 billion against Tk 19.08 billion in the previous week as many investors retracted to sideline.

The daily turnover averaged Tk 3.57 billion, registering a 25.13 per cent decline over the previous week’s average of Tk Tk 4.77 billion.

Activities centred on textile, engineering and NBFIs, accounting for 19 per cent, 17 per cent and 16 per cent respectively.

The week has been of much relief for investors. Towards the end of the year, profit booking by institutions was over and market started to bounce back, said LankaBangla Securities, a leading stock broker, in its weekly market analysis.

Coming to New Year, investors probably started taking position again, the stock broker said.

From the first day of 2014, large cap stocks started getting momentum, contrary to the small cap rally for last few months. Turnover activity was 25.13 per cent lower than the previous week showing lack of strength of movement.

“Market is highly liquid, as credit demand is low due to political clashes. So, financial institutions are full of liquidity and are looking investments,” the stock broker added.

“The bridging week between the year 2013 and 2014 indulged investors with significant return,” said IDLC Investments in its weekly market analysis.

“Investors started moving to sidelines at the dawn of the week, causing a 28 per cent plunge in turnover on the maiden session.

Yet, puzzlingly, the market managed to stay positive, depending on Small and Mini Cap stocks. Portfolio rebalancing of large investors spawned robust growth in turnover in the first trading session of the week, said the merchant bank.

The following session, which was the last trading session of 2013, highlighted year-end effect dominating scrip pricing and activities, said the merchant bank.

After a days pause, market resumed on the first day of 2014. The bourse was upbeat from the beginning, but started shedding once DSEX crossed 4,300 points level. The final session of the week started slow but gained momentum in late hours,  generating 28 points gain in DSEX, the merchant bank added.

The gainers took a strong lead over the losers as out of 296 issues traded during the week, 190 declined, 74 advanced and 32 remained unchanged on DSE floor.

All the major sectors ended in green. NBFIs and fuel & power were the top movers of the week, gaining 4.50 per cent and 4.19 per cent respectively. It was followed by telecommunications 3.86 per cent and pharmaceuticals 2.71 per cent. Banks gained the least and closed at 1.04 per cent higher in the week.

The market capitalisation of the DSE went up by 2.09 per cent as it was Tk 2,619.23 billion at the opening day of the week and it stood at Tk 2,673.97 billion at the closing day of the week.

Golden Son dominated the week’s top turnover chart with shares worth Tk 783.76 million changing hands during the week followed by Appollo Ispat, LankaBangla Finance, Generation Next Fashion and Delta Life Insurance.

EBL NRB Mutual Fund was the week’s top gainer, posting a rise of 12 per cent,  while Argon Denim was the week’s worst losers, slumping by 14.06 per cent.

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Report: Babul Barman

Source: Financial Express

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