The Financial Express

Weekly market review

Benchmark index, turnover edge up on DSE

| Updated: October 28, 2020 10:53:38

Traders, wearing masks, monitoring stock price movements on computer screens at a brokerage house in the capital city — FE/Files Traders, wearing masks, monitoring stock price movements on computer screens at a brokerage house in the capital city — FE/Files

Dhaka bourse in last week posted a marginal rise in broad index and a moderate rise in turnover as major sectors performed mixed following investors' stance of diversifying portfolios.

Dhaka Stock Exchange (DSE) conducted trading for five sessions in the last week, and the DSEX, the broad index advanced in first three sessions and declined marginally in last two sessions.

At the end of the week, the benchmark index settled at 4914.04 points on Thursday with a gain of 0.86 per cent or 41.74 points from the closing mark of the previous week.

The shariah based index DSES advanced 0.11 per cent or 1.20 points to close at 1114.17.

DS30 index comprising blue chip advanced 1.32 per cent or 21.98 points in five sessions of last week and closed at 1692.44 points on the last working day of the week with a rise of 1.32 per cent or 21.98 points from the closing session of previous week.

Following mixed performance of major sectors, the market capitalisation of the main bourse declined 0.50 per cent to close at above Tk 3.96 trillion on Thursday.

Of 363 issues traded in last week, 125 advanced, 183 declined, 51 were unchanged and remaining 4 were not traded.

In last week, the DSE featured a turnover of above Tk 42.40 billion which was 26.28 per cent higher than the total turnover of previous week.

The premier bourse featured a daily average turnover of above Tk 8.48 billion in five sessions of last week.

Most of the sectors experienced mixed performance in last week. Apart from those sectors, general insurance played the most market supportive and advanced 17.2 per cent followed by life insurance 5.8 per cent and financial institutions 3.2 per cent.

Of the sectors which have witnessed the mostprice correction, engineering declined 6.6 per cent followed by Jute 4.6 per cent, telecom 3.1 per cent and textile 2.9 per cent on the premier bourse DSE.

According to a market review of EBL Securities, selling pressure was prevalent throughout the week due to portfolio rebalancing effort as many investors opted to take a fresh position on potentially profitable stocks amid earning declaration period.

"Insurance sector dominated the top turnover board and sector return chart as investors were expecting higher dividend yield as advised by the insurance authority to insurance companies," said the EBL Securities.

Investors' attention was concentrated on general insurance sector grabbed 42.4 per cent of the weekly market turnover followed by pharmaceuticals & chemicals 8.9 per cent and engineering 7.6 per cent in last week.

Continental Insurance topped the scrip-wise weekly turnover chart with a value Tk 1.47 billion followed by Beximco Pharmaceuticals Tk 1.33 billion, Republic Insurance Company Tk 1.61 billion, Asia Pacific General Insurance Company Tk 1.05 billion and Bangladesh Export Import Company Tk 1.05 billion.

According to another market review of International Leasing Securities, shaky investors sustained their sell offs on major sectors especially on mutual fund, financial institution, general insurance and bank sectors.

The port city bourse, CSE also registered a winning session. The indices-- CSCX and CASPI-- advanced by 95.2 and 146.3 points respectively in last week.

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