Hope for political stability pushes stocks up

The stock market closed higher for the third straight week that ended Thursday with turnover improving further as political turmoil eased.
 "Easing of political crisis and hope for market-friendly Monetary Policy Statement (MPS) boosted investors' confidence. As a result, the investors returned from the sideline," said an analyst.
The week also featured four trading sessions like in the previous four week as the market was closed Tuesday due to public holiday on the occasion of Eid-e-Miladunnabi. The market closed all four sessions positively.
Week-on-week, the prime index of Dhaka Stock Exchange (DSE) - DSEX-- went up by 111.53 points or 2.59 per cent to close the week at 4,519.36 points, peaking at high level since its inception on January 27, 2013.
The DS30 index, the blue chip stocks, also closed higher with gaining 37.18 points or 2.39 per cent and closed the week at 1,592.78 points.
The Chittagong Stock Exchange (CSE) also ended higher, with its Selective Categories Index - CSCX-gaining 224.32 points or 2.58 per cent to close the week at 8,887.76 points.
The total market turnover for the week on DSE stood at Tk 26.06 billion against Tk 18.29 billion in the previous week.
The daily turnover averaged 6.51 billion, registering an increase of 42.5 per cent over the previous week's average of Tk 4.57 billion.
Easing of political clashes and hope for market-friendly Monetary Policy Statement (MPS) boosted investors' confidence in the market, an analyst.
Market this week ran with relentless pace. Every day was a long green day with higher turnover, said LankaBangla Securities in its weekly market analysis.
Investors in the market seem to be happy with the improved political situation. Market participants are probably expecting new government to take necessary steps to make the economy more vibrant, said the stock broker.
Money market is very liquid with call money rate hovering around 7.0 per cent. In the first sign of economic stability, money market liquidity seems to rush into the equity market, the stock broker said.
The cement sector rallied 7.0 per cent in this week with 70 per cent increase in turnover.
"If the economy really stabilises, companies like construction materials and financial companies will perform better than they did in 2013," said the stock broker.
In 2013, cement industry was fully flat with no growth. As political situation has improved to some extent, many expect 2014 to be a stable year, it said.
Market has closed above an important psychological level of 4,500 and average daily turnover increased by 42.5 per cent in this week. This turnover hike is also indicating strength of market movement, the stock broker added.
"A vibrant week passed for the market. This week broad index DSEX gained 112 points and reached its record high level at 4,519 points," said IDLC Investments in its weekly market analysis.
Starting with a robust mode, DSEX broke its historical high level during first trading session of the week. Upcoming corporate declarations and Monetary Policy Statement (MPS) generated scrip and sector specific trading motivations, said the merchant bank.
The gainers took a strong lead over the losers as out of 298 issues traded during the week, 216 advanced, 72 declined and 10 remained unchanged on DSE floor.
All the major sectors performed well except telecommunications which retraced 1.25 per cent during the week. NBFIs saw the highest gain of 4.72 per cent followed by pharmaceuticals 3.69 per cent and banks 3.24 per cent. Fuel & power gained 2.15 per cent during the week.
The market capitalisation of the DSE went up by 1.89 per cent as it was Tk 2,712.36 billion at the opening day of the week and it stood at Tk 2,768.58 billion on the closing day of the week.
Appollo Ispat Complex dominated the week's top turnover chart with shares worth Tk 1.05 billion changing hands during the week followed by Bengal Windsor Thermoplastic, Olympic Industries, Golden Son and Square Pharma.
Pragati Life Insurance was the week's top gainer, posting a rise of 28.67 per cent, while Aramit Cement was the week's worst losers, slumping by 30.71 per cent.