Weekly Analysis: DSE, CSE edge higher, yet most stocks remain red

Stock indices advanced on both bourses over the week despite a majority of listed companies witnessing price declines, reflecting a mixed trading pattern.

According to the weekly market pulse of the Dhaka Stock Exchange (DSE), the benchmark DSEX gained 37 points. The Shariah-based DSES rose 3 points, while the blue-chip DS30 index added 21 points.

The SME index, DSMEX, posted a sharp rise of 120 points. On a year-on-year basis, DSEX and DS30 increased by 8 percent each, while DSES grew by 6 percent and the SME index by 11 percent.

However, market breadth remained negative on the DSE, with prices falling for most issues. Of the traded securities, 220 declined, 138 advanced and 29 remained unchanged.

Average daily turnover slightly increased to Tk 669 crore, up from Tk668 crore in the previous week. Sector-wise, only eight out of 21 sectors posted gains, while 13 sectors declined. Stocks in the ceramic, mutual fund and tourism sectors fell by more than 30 percent.

Except for general insurance, all financial sector stocks ended lower. Bank stocks declined by around 5 percent, non-bank financial institutions by about 11 percent, and life insurance shares dropped nearly 20 percent.

In block trading, GQ Ball Pen Industries topped the chart with shares worth Tk 20 crore, followed by Al-ArafahIslami Bank (Tk 18 crore), Fine Foods Limited (Tk 16 crore) and City Insurance (Tk 14 crore).

Bangladesh Autocars Limited emerged as the top gainer on the DSE, with its share price rising to Tk 222 at the end of the week from Tk 181 a week earlier, marking a 22 percent return. On the losing side, APSCL Non-Convertible and Fully Redeemable Coupon Bearing Bond plunged over 15 percent, with its price dropping to Tk 1,115 from Tk 1,320.

Meanwhile, the Chittagong Stock Exchange (CSE) also saw indices close higher. The benchmark CASPI rose 73 points, while the CSE30 and CSE50 indices gained 111 points and 4 points respectively.

Despite the index ending higher, most stocks on the CSE declined, with 144 issues losing value, 123 gaining and 30 remaining unchanged. Top gainers at the CSE included Sonargaon Textiles, MK Footwear, KDS Accessories, Vanguard AML Rupali Bank Balanced Fund and ACME Pesticides Limited.
The major losers were Premier Leasing and Finance, MIDAS Financing, Pragati Insurance, PHP First Mutual Fund and Global Heavy Chemicals Limited.