Stocks surge to a new high on optimism
Stocks continued to gain for the sixth consecutive week with the key index of the Dhaka Stock Exchange going over 4,800 points for the first time since its launch on January 28 last year, powered by investors' buying spree.
DSEX, the benchmark general index of the DSE, closed the week at 4,845.09 points, after gaining 91.92 points or 1.93 percent.
DSES, the shariah index of the Dhaka bourse, gained 22.09 points or 2.27 percent, to close the week at 996.36 points.
“Post-election bullish vibes with stimulus from quarterly earnings boosted the market last week,” said IDLC Investments in its weekly market analysis.
Investors reshuffled their portfolios in an effort to position themselves to benefit from future directions, the investment banker said.
Earnings declarations played a strong role in pricing of securities in the maiden part of the week. Mixed earnings came as a surprise in the context of extreme political turmoil in the last few months of 2013.
Investors were watchful over banks as corporate declarations from the sector are expected to arrive shortly, it added.
Banks captured 17 percent of the week's total turnover, followed by power with 14 percent.
“Investors are absorbing the selling pressure as they are accelerating their buying spree whenever they see cheaper prices,” LankaBangla Securities said in its weekly market analysis.
Among the major sectors: foods gained the most with 6.3 percent, tannery 6.1 percent, pharma 5.7 percent, banks 2.82 percent, and power 0.46 percent.
Conversely, top losing sectors were mutual funds with 12.9 percent, textile 2.6 percent, engineering 2.5 percent, non-bank financial institutions 0.35 percent and telecoms 0.13 percent.
The gainers took a modest lead over the losers as 149 issues advanced, 138 declined and 11 remained unchanged out of 298 that traded on the DSE.
Meghna Petroleum featured in the most traded stocks chart with 50.21 lakh shares worth Tk 138 crore traded, followed by Square Pharma and Jamuna Oil.
Al-Haj Textile was the week's top gainer, posting a rise of 18.37 percent while GSP Finance was the worst loser, declining by 17.13 percent.
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