Capital market investors gain amid lower market risk

The capital market witnessed a bullish trend in the last week, when market risk was lower than the previous week, according to a research and analysis agency.

Research and Innovation Lab (RIL) says in its weekly analysis that the total turnover increased by 21.81 percent, number of trades by 19.84 percent and market capitalisation by 1.72 percent.

PARTICULARS	THIS Week	PREVIOUS Week	Change
DSEX Index	4443.07	4370.50	1.96%
Average Mkt. Cap of the week (bln Tk)	3075.46	3023.42	1.72%
Turnover (bln Tk )	20.43	16.77	21.81%
Total Volume (mln)	609.8	504.2	20.94%
Total Trade	554727	462877	19.84%
Return to Risk Ratio (X)	2.69	-0.35	860.95%

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

According to RIL, investors gained from their funds in the market last week, when they earned 2.69 units against 1 unit of risk.

The broad DSEX Index rose by 1.96 percent, or 85.53 points, at 0.73 percent market risk. The advance-decline ratio (AD ratio) increased to 0.93 from 0.92.

Market capitalisation of multinational companies (MNC) decreased to 32.90 percent from 32.98 percent.

Sector performance

Price earning (P/E) ratios of the paper and printing and jute sectors were the highest – 148.75 and 147.09 respectively – among all equities. Investors in the sectors sustained losses last week.

RIL advises investors to be cautious while buying scrips of the sectors as they carry a higher degree of risk.

Top scrips to observe

The top five stocks by return generation were IBNSINA (17.7%), PRAGATILIF (15%), SAPORTL (14.10%), NHFIL (13.60%) and GSPFINANCE (13.30%), while the worst five were DSSL(-13.60%), FIRSTSBANK (-8.90%), ARAMIT (-8.80%), PHOENIXFIN(-8.40%) and ZAHEENSPIN (-7.90%).

The top five scrips based on volatility and fluctuation in prices were BATBC (36.24), LINDEBD (34.93), EASTRNLUB (31.26), GEMINISEA(30.93) and LIBRAINFU (21.69).

The top five by turnover in terms of value were DOREENPWR (4.16%), LANKABAFIN (3.51%), IBNSINA(3.42%),BSRMLTD (3.20%) andKEYACOSMET (3.02%) while top five in terms of volume were KEYACOSMET (6.47%), LANKABAFIN (3.22%), NCCBANK (2.95%), DSSL(2.95%) and UNITEDAIR (2.64%).

Top stocks by market capitalisation were GP (10.23%), SQUARPHARMA (5.23%), BATBC (5.12%), LAFSURCEML (2.60%) and RENETA (2.16%).

How the market may behave next week

The agency says the market may be less volatile in the next week, when profit booking may be possible to some extent.

It says last week’s bullish trend may continue in the next week.

RIL advises investors to focus more on protecting their investment than making high returns in the coming week.