Dhaka bourse indices post weekly gains

After a week of downturn because of profit booking, the equity indices of the Dhaka bourse bounced back last week.

DSEX, the broad index of the Dhaka Stock Exchange (DSE), advanced 57 points or 0.9% in the trading week from 2 October to 6 October, although stocks were traded in four days as the market was closed one day due to a government holiday.

But, the daily average turnover decreased by 9.7% to Tk1,319.54 crore last week from Tk1,461.23 crore in the previous week.

On the other hand, the total market capitalisation increased by 0.34% to Tk5,21,676 crore.

In the week before last, the equity indices on the DSE experienced corrections as investors decided to realise profits from the recently rallied stocks and stay on the sidelines ahead of upcoming earnings declarations.

"The indices of the DSE marked steady gains throughout the week as investors looked out for particular sector-specific stocks with the expectation of quick gains, while a majority of stocks were stuck at the floor prices without potential buyers, gradually curbing the turnover in the market," says EBL Securities in a weekly commentary.

"Moreover, recent disclosures regarding declining export and remittance inflows along with a widening trade deficit have spiralled investors' concerns regarding the market outlook, prompting them to stay watchful on the trading floor," reads the report.

Investors were active primarily in the pharmaceutical & chemicals sector, which contributed 18% to the total turnover, followed by the engineering sector contributing 16.7%, and the miscellaneous sector adding 15.2%.

The jute sector led the highest sectoral gain with 5.5%, while the travel sector showed the highest correction of 3.4%.

At the end of the week, the average price-to-earnings (PE) ratio on the DSE stood at 14.98, which was 0.5% higher than 14.91 a week ago.