Stocks end final week of 2020 on high note

Stocks witnessed yet another upbeat week, the last week of 2020, with the key index of the major bourse hitting an 18-month high, as investors put bet on the market amid high expectations in the New Year.
Week-on-week, DSEX, the core index of the Dhaka Stock Exchange (DSE), soared 184 points or 3.52 per cent to settle at 5,402. It has been the highest since June 30, 2019, when DSEX was 5,421.
The DSEX added more than 533 points in the past five straight weeks while market capitalisation surged by Tk 577 billion during the period under review, hitting an all-time high to Tk 4,482 billion.
Large-cap stocks like Robi Axiata and Walton Hi-Tech Industries entered the market which helped DSE market-cap reaching to an all-time high.
The market-cap of the biggest-ever issue Robi, which made trading debut December 24, reached more than Tk 156 billion. Walton's market-cap stood at Tk 322.34 billion and emerged as the second largest listed company next to Grameenphone only.
The country's capital market passed 2020 with robust return, compared to the bourses in the region, posting a 949 points or 21.3 per cent gain, helped by large-cap stocks and supportive measures.
Market analysts said the investors kept their buying spree on major sector stocks amid high expectations in the New Year riding on regulatory efforts, the gradual traction in economic activities coupled with hope for the Covid-19 vaccine.
They also attribute the recent directive given by the prime minister to ministries to formulate another stimulus package, the finance minister's relentless efforts to buoy up the market and the decisive and tough measures initiated by the securities regulator in recent months to the ongoing turnaround of the market.
"Spontaneous participation amid high expectations in new year lured the institutional investors and for placing fresh bet on large-cap stocks," said a merchant banker.
He noted that factors like lower returns on the money market amid excess liquidity in the banking sector, hope for the Covid-19 vaccine and strong regulatory actions against wrongdoers prompted sideline investors to inject fresh funds into stocks.
The regulator is continuing its effort to enhance the market depth through listing of large-cap companies having good fundamentals which also tempted the investors to stay afloat, he said.
"The market has been rising due mainly to the growing confidence of investors riding on regulatory efforts to establish a vibrant capital market," he added.
As the Covid-19 vaccination has started in the major trade partners of Bangladesh, investors' confidence strengthened as this indicates continued rebound of the global economy, commented EBL Securities.
Two other indices also ended higher. The DSE 30 Index comprising blue chips jumped 87.23 points to finish at 1,963 and the DSE Shariah Index (DSES) rose 38.44 points to close at 1,242.
The market saw four trading days as the market remained closed on December 31 due to bank holiday and all sessions saw substantial gain with rising turnover.
Total turnover, a crucial indicator of the market, stood at Tk 58.03 billion as against Tk 56.23 billion in the week before despite last week saw four trading sessions.
The newly listed Robi Axiata was the week's best performer, posting a gain of 98.67 per cent while Mozaffar Hossain Spinning Mills was the week's worst loser, losing 11.45 per cent.
The Chittagong Stock Exchange (CSE) also ended bullish note with the CSE All Share Price Index - CASPI -soaring 603 points to settle at 15,592 and the Selective Categories Index - CSCX advancing 367 points to close at 9,403.
Of the issues traded, 194 advanced, 69 declined and 60 remained unchanged on the CSE.
The port city's bourse traded 86.17 million shares and mutual fund units with turnover value of Tk 2.29 billion during the week.

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