Stocks registered little gains in the past week, as profit booking on some stocks restricted bull-run over the weeks.
In the week ended Thursday, the benchmark DSEX gained 50 points or 1% to close at 4,753, extending the gaining streak for fifth consecutive weeks. Since January 12 to 26, it rose by around 300 points.
The DS30 index, the blue chip stocks, rallied marginally about 4 points or 0.3% to close at 1,660. Shariah based index lost 2 points or 0.3% to 974.
The Chittagong Stock Exchange (CSE) also closed positive, with its Selective Categories Index CSCX rose 133 points or 1.5% to 9,366.
Out of five trading sessions, market closed higher in three trading sessions and two sessions witnessed mild correction on profit taking.
The average daily turnover stood at Tk721 crore, registering a fall of 2.5% over the previous week’s average of Tk739 crore.
“Expectation based rollercoaster seemed to dominate the bourse over the week ahead of earning declarations,” said IDLC Investments in its weekly market analysis.
Sector wise in line with stock wise expectations made the market scenario vibrant, which eventually assisted DSEX to add 50 points more from that of the last week, it said.
Overall market observed investors’ positive response to earning expectations and investment outlook, it said, adding that fresh positioning and re-positioning in lucrative scrips, profit booking, natural correction and scrip wise movements were the common scenarios throughout the week.
The central bank announced the monetary policy for the second half of the current fiscal year on January 27, which apparently had no impact on the market in the past week.
Since two weeks before unveiling the MPS, market analysts were frequently saying that the market increased due to expectation on the upcoming monetary policy coupled with apparently calm political situation.
The market, however, witnessed a moderate correction on the following day of announcing the MPS before rising again on the next day to stay the benchmark index little above last week’s level.
Although much awaited and pondered upon, the statement could exert no visible influence over the market due to lack of any significant change, said the IDLC. “As political activities cooled down and economic activities heated up, investors went into a buying mode, throughout the week.”
LankaBangla Securities said: “Market has posted around 10.5% return in first three weeks of January. Investors seemed to be booking profit in this week.”
It said market primarily tends to remain bullish as money market is very highly liquid and loan demand from entrepreneurs is still very low.
In the past week, heavyweight banking sector rose 2.8% with 50% rise in volume. General insurance sector was up by 2.5% with 0.3% fall in volume.
“Banks and general insurance are the December closing sectors. Investors are probably interested in these sectors for upcoming corporate declarations,” said the LankaBangla.
It said stocks have registered modest gains and gracefully closed the week with decent turnover volume.
Out of 300 issues traded in the past the week, 140 advanced, 146 declined and 14 remained unchanged at the DSE.
Food and allied which now comprised 7.4% of the total equity market cap following the inclusion of Olympic Industries. The sector posted an impressive gain of over 9%, led by BATBC which gained more than 13%.
Banks and telecommunications also went up by 2.9% and 0.4% respectively. Pharmaceuticals and non-banking financial institutions ended in red on profit booking.
Meghna Petroleum dominated the week’s top turnover chart with shares worth Tk133 crore changing hands, followed by Padma Oil, Square Pharma, UCBL and Olympic Industries.