Stocks up amid lower market risk, selling pressure

The capital market saw an upward trend last week, when risk and selling pressure were lower than the previous weeks, according to a research agency.

Research and Innovation Lab (RIL) in its weekly stocks roundup said market capitalisation increased by 0.07 percent with trade declining by 3.22 percent and turnover falling by 9.41 percent.

It said some of the investors were in wait-and-see mood and were not engaged in trading.  

PARTICULARS	THIS Week	PREVIOUS      Week	Change
DSEX Index	4581.35	4571.12	0.22%
Average Mkt. Cap of the week (billion Tk)	3168.65	3166.32	0.07%
Turnover (billion Tk)	18.63	20.57	-9.41%
Total Volume (million)	490.1	590.6	-17.01%
Total Trade	512694	529759	-3.22%
Sharpe Ratio (X)	0.32	-0.39	182.49% Up
Return to Risk Ratio (X)	0.76	-0.11	767.28% Up

                                       Source: Research & Innovation Lab (RIL), Royal Capital Limited

RIL said that in the last week the gain on investment was 0.76 unit against 1 unit of risk, which is more than the previous week.

The broad index went up by 0.22 percent (10.23 points) at 0.30 percent market risk. The advanced-decline ratio (AD ratio) regressed from 0.96 to 0.95.

The agency said the market moved bullish in the week, when market capitalisation of multinational companies (MNC) increased to 34.47 percent from 33.44 percent.

Sector performance

Price earning (P/E) ratios of jute (129.05) and paper and printing (106.73) sectors were the highest among all equities, reflecting high demand for the securities of the sectors compared to per unit of earnings.

Investors in paper and printing sector sustained loss (-0.69%) last week.

RIL said anyone should be ‘extremely cautious’ while investing in the securities in the sector as it carried higher degree of risk.

Top scripts

The top five stocks by return generation are LIBRAINFU (26.41%), GEMINISEA (25.09%), BSRMLTD (25.04%), PRIMELIFE (19.33%) and CMCKAMAL (17.81%) and the worst five are MAKSONSPIN (-20.93%), EASTERNLUB (-11.82%), KPPL (-10.24%), ISLAMIBANK (-9.77%) and LRGLOBMF1 (-7.27%).

The top five stocks based on fluctuation in prices are BATBC (63.05), LIBRAINFU (51.62), STYLECRAFT (50.24), GEMINISEA (44.13) and GLAXOSMITH (40.38).

The top five securities by turnover in terms of value are BXPHARMA (6.36%), BSRMLTD (3.54%), CITYBANK (2.39%), SQURPHARMA (2.35%) and UPGDCL (2.29%) and the top five in terms of volume are UNITEDAIR (4.31%), CITYBANK (3.84%), FUWANGCER (3.75%), ALLTEX (2.61%), and BXPHARMA (2.55%).

Top stocks by market capitalisation are GP (10.89%), BATBC (5.49%), SQUARPHARMA (5.18%), LAFSURCEML (2.74%) and RENATA (2.14%).

RIL said some companies such as ITC traded in high volumes and number despite having no disclosed price sensitive information. It advised investors to be careful against the stocks.

How market may behave next week

Analysing the scenario of last few weeks, RIL said the market might remain volatile to some extent in the next week, when profit booking might not be ‘very easy’.

However, it said, investors could be hopeful as there are possibility that the bullish trend of the last week would continue.

The agency said investors should focus more on protecting their investment rather than making high return.