Stock markets witnessed moderate rise in the past week, breaking a fifth-week straight losses, as some optimistic investors availed the low prices particularly of manufacturing issues ahead of their corporate decelerations.
However, most of the investors still remained out of the market as political unrest is set to enter into its third month.
During the week that ended on Thursday last, the benchmark index DSEX ended at 4,509, rising 41 points or 1%. The blue-chip index DS30 rose 27 points or 1.7% to 1,713. The Shariah index DSES was up 15 points or 1.5% to 1,096.
The Chittagong Stock Exchange Selective Categories Index, CSCX gained 38 points or 0.5% to close at 8,338.
The week’s daily average turnover averaged Tk297 crore, registering an increase of more than 16% over the previous week. Pharmaceuticals and energy sectors together accounted for 35% of the week’s turnover.
IDLC Investments said after few weeks of “brutal correction”, it tried to create a breathing space for the investors during the last week.
The week started with a hope of easing the ongoing political tension, which pulled forth investors, who had been waiting for the rebound, it said.
“Over the preceding weekend, expectations of major opposition party participating in election, scrapping blockades and strikes formed in the national mindset. Investors waiting for such turnaround predictably rushed in with a buying mode as trade started.”
Lanka Bangla Securities said market ended in green zone last week backing on manufacturing stocks ahead of corporate declarations. Large-cap stocks exhibited higher return as investors took position in consumer and Pharma stocks, it said.
Among the large-cap sectors, pharmaceuticals registered the highest gain of 3% over the week. Telecommunications also posted a heavy rally of 3%. Cement and fuel and power also appreciated by almost 3% and 2.4%. Food and allied ended marginally up. The financial sectors –non-banking financial institutions and banks –-declined.