Blue-chip shares drive weekly turnover

With optimism surrounding the upcoming election next month, capital market investors are reshuffling their portfolios toward blue-chip and fundamentally strong stocks, as increased buying appetite pushed these shares to the top of the turnover chart last week.

Riding on strong trading driven by investors' sector-specific concentration in blue-chip and bank stocks, turnover at the Dhaka Stock Exchange (DSE) surged by 34% last week, while all indices posted gains, data showed.

The other two indices – DS30, the blue-chip index, and DSES, the Shariah index – gained 45 points and 4.8 points respectively, to close at 1,915 and 1,011.

Throughout the week, total turnover stood at Tk2,373 crore, with average daily turnover of Tk474.54 crore – up 34% from the previous week.

In its weekly market commentary, EBL Securities said the benchmark index of the capital bourse extended its upward trajectory over the week, carrying forward New Year optimism, as dominant buying interest prevailed amid expectations of moderation in prevailing market uncertainties.

"Investors selectively repositioned into heavyweight banking stocks amid improving sectoral expectations and perceived clarity on the political front, which added strength to the market's upward trajectory," it said.

"While intermittent profit-taking emerged as cautious participants booked recent gains, buying interest ultimately outweighed selling pressure by week's end, driven by strong accumulation in particular large-cap stocks," the commentary added.

Investors were mostly active in the banking sector, which contributed 19.5% of total turnover, followed by the textile sector at 13.9% and the pharmaceuticals sector at 13.0%.

DSE data showed that of the top ten turnover stocks, nine were from the A category, while one was from the B category. Orion Infusion led the turnover chart with a 4.83% share of total turnover, followed by Square Pharmaceuticals, City Bank, Uttara Bank, and Fine Foods.

On the gainers' front, mostly A- and B-category stocks dominated the top ten gainers. Tallu Spinning Mills, a Z-category stock, topped the chart with a 20.29% rise in share price to Tk8.30 each, followed by GQ Ball Pen, which rose 16.33% to Tk527.10, Pubali Bank by 14% to Tk36.60, Islami Bank by 12.65% to Tk37.40, and NRB Bank by 11.29% to Tk6.90.

Meanwhile, Z-category stocks – mostly weak non-bank financial institutions – dominated the top ten losers. Peoples Leasing, Fareast Finance, FAS Finance, Premier Leasing, and International Leasing featured prominently on the losing list.