Dhaka, Bangladesh (BBN) – Bangladesh’s stocks posted moderate rise last week that ended on Thursday as investors showed their buying appetite on large-cap stocks amid optimism.
Brokers said the market closed positive as optimistic investors showed their buying appetite on sector-wise stocks while cautious investors opted for booking profit centering monetary policy announcement and ongoing earnings declaration session.
Bangladesh Bank (BB) unveiled the “growth-supportive” monetary policy for the first half of the current fiscal year (FY) 2017-18 on Wednesday while some large-cap companies posted hefty quarterly earnings.
The week witnessed five trading sessions as usual. Of them, three sessions closed higher while remaining two sessions faced correction.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), which replaced the DGEN in four-and-a-half-year back, went up by 32.60 points or 0.56 percent to settle at 5,815.
The two other indices — the DS30 index and the DSE Shariah Index (DSES) – also followed the suit to close at 2,129 and 1,318 points, after advancing 7.31 points and 3.95 points respectively.
The port city bourse, Chittagong Stock Exchange (CSE), also finished higher with its Selective Categories Index, CSCX, gaining 53 points or 0.49 percent to settle at 10,897 points.
Large-cap sectors showed mixed performances. Telecommunication posted the highest gain of 3.24 percent, followed by bank with 1.39 percent, non-bank financial institutions 0.66 percent, fuel & power 0.58 percent, food & allied 0.01 percent.
Pharmaceuticals lost 0.20 percent and engineering 0.03 percent closed flat in red.
The total turnover for the week fell sharply to BDT 31 billion on major bourse which was BDT 50.79 billion in the week before.
The daily turnover averaged at BDT 6.23 billion, which was 39 percent lower than the previous week’s average of BDT 10.6 billion.
Bank maintained its steep lead in turnover share, capturing 19 percent of the week’s total turnover. Second highest turnover contributor textile, contributed 14 percent, closely followed by engineering with 13 percent.
City Bank Capital Resources, a merchant bank, said, “Investors mostly concentrated on bank, textile, engineering, NBFIs, pharma, fuel & power and miscellaneous sectors’ issues which also hold the top position as turnover contributors in turnover chart”.
The merchant bank noted that block trade contributed 4.0 percent to the total weekly turnover where stocks like Olympic Industries, BATBC, Eastern Bank, Brac Bank, IDLC Finance, and GP dominated the block trade board.
“Trading activities fell sharply as the risk-averse investors booked quick-gain over last few sessions price surge and refrained from making fresh investments while some others were busy with rebalancing their portfolio following the announcement of monetary policy and ongoing earnings declaration sessions,” commented International Leasing Securities, a stockbroker, in an analysis.
The stockbroker noted that positive momentum in some big-cap stocks especially from telecom, bank, textile and financial institution sectors helped the indices to close higher.
LankaBangla Finance topped the week’s turnover chart with shares of BDT 1.09 billion changing hands, closely followed by IFAD Autos, Mercantile Bank, City Bank and GrameenPhone.
Rupali Bank was the week’s highest gainer, posting 16.71 percent gain, while ICB AMCL Second Mutual Fund was the worst loser, losing 6.67 percent.