The stock market experienced bullish spell for the fourth week in a row, attracting investors, even inactive ones, to join in trade.
The factors, including positive economic outlook, anticipation of no major political upheaval and falling bank interest rate might help the market continue to move up.
For the first time since its launching in January last year, the benchmark DSEX crossed 5000-mark in the last trading day of the past week. At the end of the week, it surged almost 61 points or 3% to 5,027.
The comprising blue chips DS30 index rose 50 points or 2.7% to 1,949. The DSE Shariah Index closed at 1,182, rising 34 points or 3%.
Chittagong Stock Exchange (CSE) Selective Categories Index - CSCX – saw steepest of 358 points or 4% to close at 9,439.
The volume of trade also continued to be on the upswing, as the week’s daily average turnover was Tk1,000 crore, an increase of 9% over the previous week’s Tk919 crore.
Engineering, pharmaceuticals and power stocks continued to dominate the trading. These three sectors accounted for 17%, 16% and 14% respectively of the week’s total turnover.
Lanka Bangla Securities said: “The current market scenario indicates investors’ growing confidence about the long term bullishness of the market with burgeoning liquidity and economic activities.”
The fixed deposit receipt rate has been on the wane for some time now, which might be alluring investors to invest in equity, it said.
It said other factors such as stable economic outlook and relatively calm in politics have attracted some investors.
According to the IDLC Investments, the last week of the month featured with strong turnover and persistent enthusiasm among the investors.
All the five sessions closed in green while investors continued to inject fresh funds and return-chasing behavior sustained, it said.
The new high of index has also offered confidence in retail participants, it added.
The brokers said the investors who so far remained on the sidelines were attracted towards the market, leading to a vibrant trading.
Telecommunication posted the highest gain of nearly 9%, followed by banks that moved up by 4.7% and non-banking financial institutions 3%.
Fuel and power also went up by 3%. Food and allied and pharmaceuticals declined 3% and 0.8% respectively.
Gainers outpaced losers as out of 310 issues traded, 194 closed higher, 106 lower and 10 remained unchanged during the past week.