Stock markets were back on track in the past week after remaining bearish in the last fourth consecutive week with steep gains in all three indices.
Dealers said investors who stayed sidelines in fear of further losses staged comeback putting fresh funds on heavyweight companies.
In the past week that ended Thursday, the benchmark index DSEX advanced by a significant rise of 189 points or 4% to close at 4,962.
The comprising blue chips DS30 index surged 83 points or 4.7% to 1,843. The DSE Shariah Index soared 54 points or 5% to 1,161.
The Chittagong Stock Exchange also saw steep rise with its Selective Categories Index, CSCX, gained 357 points or 4% to settle at 9,310.
The past week also witnessed buoyant trading activities as the average daily turnover at DSE stood at Tk400-crore, which was 22% over the previous week.
All the major sectors posted gains in the past week.
Telecommunications registered the highest gain of more than 12%, led by heavyweight Grameenphone that rallied 12.7%.
Cement sector also performed well with a rally of 5.4%, followed by power that climbed 5.3%, cement 5%, pharmaceuticals 3%, banks 3% and non-banking financial institutions 2.9%.
The small cap sectors IT and service and real estate jumped more than 7% each. Conversely, top losing sectors were mutual fund, food and allied, general insurance, ceramics and jute.
IDLC Investments said the lucrative prices, expectation on year-end earnings as well as stock specific positioning, particularly in large caps assisted the market to turn around in the past week.
Hence, the extended level of gaining tone revealed an upbeat reversal, though marginal level of profit booking took place, it said.
“Overall, investors found confidence in returning to market with some fresh fund injection.”
Lanka Bangla Securities said market observed some rays of sunshine after consecutive weeks of correction.
It said investors became active during the past week as average daily turnover increased by 22% from previous week.
Trailing market P/E reached 15.66 in the previous week which might have lured the buyers from sideline, it said.
Royal Capital total trade volume in the past week was higher than the previous week, which indicated higher market activity and buy mood after a prolonged fall observed in the last few weeks.
“But it may carry risk to the investors as the bull was led by Z-category of scripts.”
