The stock market drifted sideways in the week to Thursday, as it notched modest gains, paring all the losses made in the previous week, with major sectors showing mixed performance.

Of the four trading days this week, three sessions closed higher while one session suffer losses. Investors were busy both buying and selling shares while sector-specific stocks lured many investors.

Of major sectors, pharmaceuticals & chemicals played a pivotal role in positive closure of the benchmark index (DSEX) of Dhaka Stock Exchange (DSE).

The DSEX settled the week 56.62 points or 0.87 per cent higher at 6569.51 after losing 51.11 points the previous week.

The Shariah-based DSES index also advanced 1.67 per cent or 23.75 points to close at 1443.48 while the DS30 index, comprising blue-chip securities, went up by 1.34 per cent or 31.15 points to finish at 2361.57.

"The equity indices of the Dhaka bourse marked steady gains throughout the week as opportunist investors looked out for particular sector-specific stocks with the expectation of quick gains," said a market review of EBL Securities.

A majority of stocks, however, were stuck at 'floor prices' without potential buyers, gradually curbing the turnover in the market, it said.

"The 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," it explained.

Of 387 issues traded on DSE last week, 101 stocks gained, 94 declined and 192 others remained unchanged.

Turnover, a crucial indicator of the market, however, dropped 27.76 per cent to Tk 52.78 billion from the previous week's turnover of Tk 73.06 billion, as many investors adopted a wait-and-see stance.

This week, DSE saw four trading sessions instead of usual five sessions because of a public holiday on account of Durga Puja, which contributed to a sharp decline in the turnover.

Of the sectors which saw price appreciations, banking sector advanced 0.1 per cent, engineering 0.6 per cent, fuel & power 0.2 per cent, pharmaceuticals & chemicals 3.2 per cent, textile 0.9 per cent and jute 5.5 per cent.

Of the sectors which saw price corrections, financial institutions declined 1.5 per cent, general insurance 0.4 per cent, life insurance 2.2 per cent, miscellaneous 1.5 per cent, services & real estate 0.4 per cent, telecommunications 0.1 per cent and travel & leisure 3.4 per cent.

A market review of International Leasing Securities said export earnings and remittances declined by 6.25 per cent and 11 per cent year-on-year respectively in September that are widening the trade deficit and increasing pressure on foreign exchange reserves. "All these news created a negative sentiment among the investors."

Investors' participation was concentrated mostly on pharmaceuticals & chemicals sector which grabbed 18 per cent of the weekly turnover followed by engineering (16.7 per cent), miscellaneous (15.2 per cent), services & real estate (7.1 per cent) and fuel & power (6.2 per cent).

Orion Pharma topped the scrip-wise weekly turnover chart, featuring a value of Tk 4.95 billion.

The company was also the top weekly gainer with a rise of 29.04 per cent to close at Tk 148 each.

Bangladesh Welding Electrodes was the week's worst loser, plunging 16.21 per cent to close at Tk 24.30.

CASPI, the broad index of Chittagong Stock Exchange (CSE), advanced 0.74 per cent last week to close at 19,332.60 points on Thursday.

Of 307 issues traded, 87 advanced, 78 declined and 142 others remained unchanged. The port city bourse posted a total turnover of Tk 891.99 million.

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Published by Syed Manzur Elahi for International Publications Limited from Tropicana Tower (4th floor), 45, Topkhana Road, GPO Box : 2526 Dhaka- 1000 and printed by him from City Publishing House Ltd., 1 RK Mission Road, Dhaka-1000.

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