Stocks stayed flat in the past week in volatile trade, after witnessing modest price correction in the previous week.
The benchmark index of the Dhaka Stock Exchange (DSE), DSEX, ended at 4,759, gaining 12 points or 1.8%. The blue chip comprising DS30 index dropped 8 points or 0.6% to close at 1,688. The DSE Shariah Index (DSES) witnessed fractional losses with a fall of 0.5 points to 995.
The past week opened first session in a bearish mood and sellers were very dominant. Selling pressure continued till the third session. The DSE turnover was also falling rapidly. Buyers knocked out sellers on fourth session and market healed all its lost points in last two trading days of the week.
Market participation at DSE remained sluggish with the daily turnover averaged Tk373 crore, a sharp decrease of more than 35% over the previous week.
“Market level correction as well as volatility prompted investors to be somewhat meticulous, initially. However, a sum of 174 points market correction in last eight sessions, offered investors a significant price advantage,” said IDLC Investment in its market analysis. Abetted by this, later part of the past week showcased investors’ intension to be in a buying mood, it said.
It said profit booking started slicing market sentiment like previous week. “Meanwhile, volatility made a strong comeback as investors focused scrip-wise switching. Alongside, investors remained watchful over downbeat sentiment in recent sessions.”
Amid this declining scenario, positive news regarding banks’ non-performing loan assisted some sectoral gain. But, market recovered suddenly at the fourth session breaking its bearish spell as investors were in buying mood over lucrative price advantages.
Meanwhile, mutual funds knocked investors’ attention and seven mutual funds emerged in the top ten gainers list. The recovering streak extended at the final session over investors’ preference to micro cap and small cap scrips.
Fuel and power, and pharmaceuticals had leading positions in turnover for the third consecutive weeks, capturing 14.34% and 14.24% of the week’s total value.
Among the major sectors, textile, food and allied, cement performed well, whereas life Insurance, pharmaceuticals and non-life insurance declined on profit booking.
The top traded stocks were Square Pharmaceuticals, Bangladesh Submarine Cable Company Ltd, Olympic Industries, Meghna Petroleum, Delta Life Insurance, Jamuna Oil and Southeast Bank.