Stock markets continued to stay bullish for the second consecutive week, mainly spurred by the government’s bail-out move to prop up the market.
During the week that ended Thursday, the benchmark Dhaka Stock Exchange General Index (DGEN) gained 130 points or 3% to 4,430.
The new benchmark index DSEX soared 134 points or 3% to 4,214. The DS30 comprising blue chip companies soared 47 points or 3% to 1,553.
The Chittagong Stock Exchange (CSE) Selective Category Index, CSCX, gained 257 points or 3% to 8,287.
Relatively calm political front and the government’s Tk9bn fund approval to revive the market have attracted the investors, dealers say. Out of the five trading sessions, three sessions gained sharply, while two sessions lost marginally.
The average daily turnover stood at Tk8.48bn from the previous week’s Tk5.79bn. On Wednesday, turnover value hit Tk10.72bn, which was the highest in nine months since September 26, 2012.
The debut trade of two new issues – Familytex (BD) and JMI Syringes & Medical Devices – over the week also helped boosting the total turnover to reach this high value.
“Investors’ confidence grew over time by political easiness, particularly after recent city corporation election, increased foreign investment in blue chip stocks and news on approval of creating Tk9.0bn capital market fund,” said IDLC Investments in its weekly market analysis.
Eventually, DGEN broke 4,400-point psychological level at the fourth session of the week, reaching highest position within last seven and half months.
But, participation decreased by 36% at the last session of the week because of investors’ “wait and see” strategy.
“During the week, investors’ active participation, rebalancing among the fundamentally strong scrips and profit taking were widely observed,” IDLC said.
The week observed the impact of investors’ confidence over different expectations regarding capital market, it said.
“Market started the week with strong bullishness posting a gain of 99.87 points Sunday. Bullishness continued with rising turnover throughout the week,” LankaBangla Securities said.
Out of 295 issues traded during the week at the premier bourse, 160 advanced, 119 declined and 16 remained unchanged.
All the major sectors ended in green. NBFIs and fuel and power sectors were the big market movers in the week, gaining 6% and 5.81% respectively.
Pharmaceuticals, telecommunications and banks also gained 3.77%, 3.64% and 1.92% respectively.
Bangladesh Submarine Cable Company was the week’s most traded stocks with shares worth Tk2.12bn changing hands.
The week’s other turnover leaders were Unique Hotel and Resorts, Summit Purbanchol Power Company, United Airways, Orion Pharma, Meghna Petroleum, RN Spinning, Olympic Industries, Square Pharma and Familytex.