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Stocks end week with moderate gains

WT24 Desk

Stock market closed week Thursday with moderate gains mostly in the large-cap securities while banking sector witnessed sort-lived volatility because of voluminous offloading of shares of a bank, agencies reports.  The broader DSEX index of Dhaka Stock Exchange (DSE) was up by 31.29 points this week to close at 4808.87, but the blue-chip DS30 and Shariah DSES ended marginally lower at 1859.40 and 1191.01 accordingly.

Among the major economic updates of the week was the new record for foreign exchange reserves that crossed $26 billion-mark for the first time on Tuesday. The reserve was also 17.8 percent up on year-on-year basis.

The mixed data about provisioning against default loans in banks also impacted the market, particularly the banking sector’s shares. Media reported provision shortfall, saying that the default loans declined at the same time. The mixed data triggered volatility in banking shares. The volatility, however, could not sustain as banking and financial stocks regained strength on the news of improved asset quality.

Dubai Islamic Bank, one of the corporate sponsors of Islami Bank, sold over 37 lakh shares through stock exchange this week, which created a sale pressure on the banking sector. Share prices of the Islami Bank, however, fell marginally as the sale completed on Thursday. Average daily turnover in value during the week was 9.04 percent down to Taka 563.93 crore when the daily trade volume fell by 1.42 percent to 14.44 crore shares as investors continued their cautious trading behavior.

Market remained mostly for buyers as 171 issues closed the week lower against 133 advancing securities while 20 remained static among 326 issues traded. Market capitalisation remained unchanged despite the lower level of activities when market P/E (price earning) stood at 15.94.

Pharmaceuticals and engineering stocks were the major market movers this week with turnover contribution of 16.0 percent and 18.0 percent respectively. Among the major gaining sectors were NBFI (5.18 percent), bank (3.15 percent) and tannery (2.84 percent).  The top five gaining issues were Apex Foods (28.84 percent), Northern Jute (27.08 percent), Apex Tannery (20.42 percent), Monno Ceramic (19.10 percent) and IFIC (18.63 percent).

The major losing sectors were mutual fund (-3.40 percent), cement (-3.24 percent) and miscellaneous (-1.59 percent) and major losing companies were EBLNRB MF (-12.5 percent), EBL1STMF (-9.3 percent), Family Tex (-8.5 percent) and Navana CNG (-8.36 percent). On the last day of the week, turnover value on DSE was 8.50 percent up at Taka 596.97 crore and the volume was higher by 1.30 percent to 14.44 crore shares when 158 securities gained, 127 declined and 53 remained unchanged.

Chittagong Stock Exchange (CSE) also closed the week in green when its major CSCX index ended over 36 points to higher at 9027.44. On the last trading session, 116 securities closed higher against 96 losing issues when the daily trade value was Taka 41.43 crore for 1.19 crore shares.

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