Stocks rallied for second straight week ended Thursday as some investors took fresh position amid relatively calm political situation.
Well performance of the multinational companies, energy and textile stocks helped the market close higher during the week thanks to investors parked their money into relatively safer and steady stocks.
During the week, the DSE broad index (DSEX) gained 142 points or 3.6% to close at 4,125. The blue-chip DS30 index ended at 1,561, rising 46 points or 3%.
The Chittagong Stock Exchange (CSE) Selective Category Index, CSCX, surged 247 points or 3% to 8,092.
Investor participation on DSE increased in the past week, the average daily turnover stood at Tk5.9bn, an increase of 110% over the previous week's average of Tk2.8bn.
“This week, market has seen initiation of the bullish rally, relying on the listed multinationals, textile, fuel and power and other manufacturing equities,” said Lanka Bangla Securities in its weekly market analysis.
Specially, last trading day of the week was completely overwhelmed by the bullishness of the multinationals, it said.
It said: “Revive of market activities started after the Eid holidays as the signs of political agitation abated for the short term.”
Strong and healthy external balances are helping to maintain the overall calmness, which in effect is improving investors' sentiment, it said.
It said multinational companies helped fuel the market rally as the investors tried to park their money into relatively safer and steady stocks amid political upheaval.
IDLC Investment said apparent ease in political frontier coupled with series of positive economic news facilitated the market to keep on and accelerate over the last week's gain, amid natural corrections and profit taking.
“News of robust growth in RMG export, half-yearly earnings surprise and BTRC’s nod regarding upcoming 3G auction mostly decided this week's market sentiment,” it said.
A tripartite memorandum of understanding was signed Thursday among the Bangladesh Bank, Bangladesh Securities and Exchange Commission and Investment Corporation of Bangladesh for releasing the first installment of the fund starting today, contributing boost to the market sentiment.
The gainers took a strong lead over the losers, as out of 295 issues traded at DSE, 206 advanced, 72 declined and 17 remained unchanged.
The week’s top gaining sectors were telecommunications 11.75%, followed by financial institutions, pharmaceuticals and fuel and power, which ended 7.9%, 3.8% and 2.9% higher respectively.
Banks ended flat.
Bangladesh Submarine Cable Company became the week's top turnover leader with shares worth Tk1.9bn changing hands followed by Padma Oil, Meghna Petroleum, Grameenphone and Square Pharma.
