Stable macroeconomic indicators push stocks higher for 4th week

The key index of the major bourse surpassed the 'psychological' cut off of 4,500 points as optimistic investors went on the buying spree.
Last week featured all five trading sessions as usual. Of them, four sessions closed higher while one session ended in the red.
DSEX, the prime index of Dhaka Stock Exchange (DSE), stayed above the 4,500 points throughout the week and ended at 4,554.51 points, registering a gain of 68.31 points or 1.52 per cent from previous week.
The other two indices saw sharp gain. The DS30, comprising blue chips, soared 53.22 points or 3.22 per cent to close at 1,705.93 points. The DSE Shariah Index surged 34.17 points or 3.33 per cent to close at 1,060.44 points.
The port city bourse Chittagong Stock Exchange (CSE) also ended higher with its Selective Categories Index - CSCX - went up by 103.85 points or 1.22 per cent to close at 8,596.27 points.
Investors' participation increased substantially last week. The total turnover reached Tk 33.61 billion, which was Tk 27.20 billion in the week before, indicating investors' optimistic sentiment about the market.
The daily turnover for the week averaged Tk 6.72 billion, registering a 23.5 per cent increase over the previous week's average of Tk 5.44 billion.
The investors' attention was mainly focused on fuel and power, pharmaceuticals, textile and engineering sectors, accounted for 18 per cent, 17 per cent, 14 per cent and 12 per cent respectively of the week's total turnover.
"Stable macroeconomic indicators amid calm political scenario kept a positive 'psychological' impact, strengthening investors' confidence level to the market," commented IDLC Investments, in its weekly market analysis.
Investors were highly active in hunting momentum-driven return and again re-allocating their positions, said the merchant bank.
Large caps especially some selective stocks of telecommunication, fuel and power and pharmaceuticals sectors continued retaining its attraction at investors-end, said the merchant bank.
LankaBangla Securities, in its market analysis said: "Positive growth in earnings of most of the listed companies, falling interest rate and excess liquidity in the banking sector might have made the investors hopeful about the market".
"The market's upward trend continued amidst investors' growing confidence and large cap stocks led the entire market forward," said International Leasing Securities.
The major sector posted mixed performance last week. Telecommunication posted staggering gain of 6.0 per cent - thanks to GP with 6.27 per cent appreciation.
Fuel and power followed next with 4.16 per cent gain - mainly due to steep price appreciation of MJL Bangladesh which gained 7.63 per cent alone.
Pharmaceuticals advanced by a mere 0.52 per cent. Banks and NBFIs lost 2.09 per cent and 0.23 per cent respectively. Food and allied also went down losing 0.89 per cent over the week.
The losers took a modest lead over the gainers as out of 306 issues traded during the week 164 declined, 128 advanced and 14 remained unchanged on DSE floor.
Two listed companies and 12 mutual funds made corporate declaration last week.
The market capitalisation of the DSE went up by 1.93 per cent as it was Tk 2,988.18 billion on the opening day of the week and it stood at Tk 3,045.81 billion on closing day of the week.
MJL Bangladesh dominated the week's top turnover chart last week, with shares worth Tk 2.20 billion changing hands followed by GP, Square Pharma, Active Fine Chemicals and Lafarge Surma Cement.
Summit Purbanchol Power Company Ltd was the week's top gainer, posting a rise of 22 per cent while ICB Sixth Mutual Fund was the week's worst loser, plunging by 19.26 per cent.