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Sunday, January 04, 2015, Poush 21, 1421, Robiul Awal 12, 1436 Hijr

Weekly Market Review
Stocks rose breaking 3-wk losing streak
Published : Sunday, 4 January, 2015,  Time : 12:00 AM,  View Count : 14
Business Desk
Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE), two bourses of the country rose last week that ended on Thursday breaking a three-week falling streaks as investors were encouraged by some positive steps of the Securities Exchange Commission (SEC) taken to boost the market, dealers said.
The week had four trading sessions like previous two weeks instead of five as the market remained closed Wednesday due to year ending Bank Holiday. Of the sessions three had sharp gains while the other had  marginal loss.
The SEC on Wednesday allowed share netting facility within the same security and extended the deadline to collect un-realised losses of merchant banks and stock brokers.
The securities regulator also extended the suspension period of effectiveness of the section 3(5) of the margin rules till June 30, 2015, allowing transactions in the portfolios which declined below 150 per cent in value.
"The securities regulators' positive steps propelled the investors to take fresh position on last session of the week," said a merchant banker.
At the DSE the prime index DSEX closed at 4,941.52 points, gaining 117.94 points or 2.45 per cent compared to the previous week while the DS30, comprising blue chips index gained 56.30 points or 3.15 per cent to close at 1,843.18 points and the Shariah Index DSES gained  35.32 points or 3.10 per cent to close at 1,174.02 points.
At the CSE the Selective Categories Index-CSCX  rose 146.39 points or 1.62 per cent to finish the week at 9,165.68 points.
However the participation of investors remained thin and total turnover for the week accumulated to Tk 8.39 billion against Tk 8.99 billion in the previous week.
The daily turnover fell by  6.66 per cent to Tk 2.09 billion from the turnover of the previous week of Tk 2.24 billion.
LanlaBangla Securities said the market observed reversal in the last week of 2014 as most of the stocks generated positive return after observing sluggishness in consecutive weeks.
"In the year of 2015, investors might be eying for reaping benefits from falling commodity prices and interest rate," said the stock broker.
The securities regulator decided to allow share netting facility for same security and extended the deadline for provisioning of un-realized loss of merchant banks and stock brokers by one year to Dec 31, 2015, which expected to increase the market turnover, said the stock broker.
IDLC Investments said: "The week remained volatile while nervous investors tried to set expectation in anticipation of better economic results in the New Year".
Turnover remained weak throughout the week partly due to political uncertainty. The week observed two consecutive nationwide strikes which also played a role to set the investors' mood, the merchant bank said.
"The securities regulator also tried to revive the market turnover by allowing same stock netting facility which would improve the liquidity condition of the market," said the merchant bank.
All the major sectors gained last week. Cement appreciated sharply by 7.86 per cent - mainly from the sector's heavy weight Lafarge Surma which gained 14.4 per cent alone.
Pharmaceuticals also posted a decent return of 2.26 per cent. Banks and NBFIs - of the financial - also closed in green, going up by 1.79 per cent and 1.34 per cent respectively.
Food and allied appreciated by 1.35 per cent. Power and telecommunication also advanced 1.14 per cent and 1.13 per cent respectively.
Gainers outpaced losers as out of 299 issues traded, 231 advanced, 58 declined and 24 remained unchanged on the DSE trading floor.
The market capitalisation of the DSE went up by 1.76 per cent as it was Tk 3,236.65 billion on the opening day of the week and it stood at Tk 3,293.02 billion on closing day of the week.
Lafarge Surma Cement dominated the week's top turnover chart for the second consecutive week with shares worth Tk 424.19 million changing hands followed by MJL BD, Beximco Pharma, GP and DESCO.
Al-Haj Textile was the week's top gainer, posting a rise of 24.13 per cent while Shahzibazar Power Company was the week's worst loser, plunging by 16.86 per cent.

Editor : Iqbal Sobhan Chowdhury
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