Industry Analysis

 
An investor who is convinced that the economy and market are attractive for investing should proceed to consider those industries that promise the most opportunities in the coming years. The significance of industry analysis can be established by considering the performance of various industries which are shown in the following table:

 
Sectoral Performance in October, 2004

Sector

Market Capitalization

% of total Market Cap

Turnover (Tk. in mn)

% of total turnover

End of the Current Month (October)

End of the last Month (September)

For this Month October

For the Month September

Financial Institutions

Banks

85,075

62,019

44.29

3,706.44

2,808.69

60.93

Insurance

9,584

8,051

4.99

147.8

270.48

2.43

Investment

1,920.85

1,515

1

40.03

47.95

0.66

Manufacturing 

Foods

11,234

11,359

5.85

133.23

127.23

2.19

Pharmaceuticals

29,478

28,602

15.35

579.98

832.78

9.53

Textile

8,553

7,746

4.45

278.51

483.27

4.58

Engineering

8,277

7,162

4.31

340.31

240.66

5.59

Ceramics

823

916

0.43

25.24

38.97

0.41

Tannery

3,666

3,498

1.91

123.78

176.79

2.03

Paper & Printing

184

222

0.1

0.99

3.49

0.02

Jute

143

133

0.07

0.22

0.24

0

Cement

23,337

22,148

12.15

339.11

258.61

5.57

Service & Miscellaneous 

Fuel & Power

4,628

4,231

2.41

42.99

18.87

0.71

Service & Real Estate

1,274

1,224

0.66

49.01

59.9

0.81

IT

1,131

933

0.59

118.63

142.82

1.95

Miscellaneous

2,253

2,024

1.17

158.61

137.55

2.61

 
According to the performance of different sectors I select five companies from five sectors which are: Bank, pharmaceutical, textile, food and engineering.

The top five sectors according to turnover are:

  1. Banks
  2. Pharmaceuticals and Chemicals
  3. Engineering
  4. Cement
  5. Textile.

The top five sectors according to market capitalization are:

  1. Banks
  2. Pharmaceuticals and Chemicals
  3. Cement
  4. Food
  5. Insurance