Weekly market review
FE Report |
January 09, 2021 10:50:14
January 09, 2021 11:30:13
Dhaka bourse welcomed the year 2021 with a robust start as investors’ active participations added 220 points to the broad index which posted the highest single week gain since August 16, 2020.
The market started the week with a flying note and finally the DSEX, the broad index of Dhaka Stock Exchange (DSE), was able to cross 5600-point market.
During the week, the turnover on the DSE also hit 10-year high on Tuesday following investors’ increased participation. On the day, the premier bourse featured a turnover of Tk 25.47 billion.
The DSE conducted trading for five sessions in last week. Of five sessions, the DSEX advanced for three sessions and declined for remaining two sessions.
At the end of the week, the core index settled at 5621.76 points with a gain of 220 points from the closing session of the previous week.
The weekly average turnover was Tk 19.90 billion, the highest value in a decade, with a rise of 37 per cent over the previous week as the investors were active on the market.
“Following the last few weeks’ cheerful movement in index and turnover, the market started the week with a flying note amidst increased participation which helped the benchmark index to cross 5,600 points mark since 20 March 2019,” according to a market review of International Leasing Securities.
It said the investors kept their buying spree amid high expectations in the New Year riding on the regulatory assurance of building a vibrant capital market in the country.
The securities regulator has allowed the brokerage firms to open new branch offices across the country after nine years.
“The investors’ enthusiasm persisted in large cap stocks especially in bank and financial institution sectors following on the clarification of the central bank regarding keeping additional 1.0 per cent general provisioning by scheduled banks against loans, which have enjoyed deferral or time extension facilities,” said the International Leasing.
In last week, the pharmaceutical sector dominated the turnover board and captured around 15 per cent of total turnover. The top ten traded stocks captured around 40 per cent of total market turnover.
Of the Pharma companies, the Beximco continued to dominate the turnover board capturing 9.0 per cent of total turnover of the week.
Point to point estimate revealed that during the week, the shariah based index DSES and DS30 advanced 23.8 points and 84.1 points respectively from their previous week’s indices.
According to another market review of EBL Securities, many investors had engaged in profit booking in last week as the market cap of of the premier bourse DSE reached all time high after the market has witnessed a continuous upward swing over the last five months.
The major sectors displayed better performance in last week on the DSE. Of the major sectors, telecommunication witnessed 17.1 per cent return followed by financial institution 12.0 per cent and services & real estate 10.8 per cent.
Of the sectors which witnessed price correction, jute declined 9.6 per cent, general insurance 6.1 per cent and paper & printing 1.9 per cent.
The investors’ participation was mostly focused on pharmaceuticals & chemicals sector which grabbed 15.4 per cent of the market turnover followed by bank 14.0 per cent and miscellaneous 10.7 per cent.
Beximco topped the scrip wise weekly turnover chart grabbing 9.0 per cent of the market turnover followed by Beximco Pharmaceuticals 7.9 per cent and IFIC Bank 5.1 per cent.
In last week, the Chittagong Stock Exchange (CSE) also witnessed investors’ enthusiastic participation.
The CSE’s indices such as CSE30, CSCX and CASPI gained 345.1 points, 456.2 points and 756.1 points respectively over the last week.