Stocks rebounded in the outgoing week, snapping a two-week losing streak, as investors showed their buying interest in potential stocks ahead of annual earnings and dividend declarations.
The week featured five trading days as usual, with the four sessions edging higher and the other facing correction amid volatile trading almost throughout the week.
Week on week, DSEX, the prime index of Dhaka Stock Exchange, went up by 62.43 points or 0.89 per cent to settle the week at 7,086, after losing 82 points in the past two consecutive weeks.
Market analysts said favourable macroeconomic indicators prompted the optimistic investors to take positions in sector-specific stocks while the profit booking tendency was seen among cautious investors.
The investors went on a buying binge on stocks that posted higher-than-expected quarterly earnings while some opted to rebalance portfolios based on year-end earnings declarations, according to a merchant banker.
The optimistic investors are putting fresh bets on the general insurance, power, engineering and pharma sector stocks, he said.
The investors were mostly active on miscellaneous, pharmaceuticals and engineering sectors due to the positive surge in latest quarterly earnings of many stocks, commented International Leasing Securities.
The miscellaneous sector captured 12.8 per cent of the week's total turnover, closely followed by pharmaceuticals (12.3 per cent) and engineering (11.6 per cent).
According to EBL Securities, stocks witnessed a positive week as most companies declared earnings growth which rejuvenated the investors' confidence.
Investors focused on rebalancing their portfolios based on recent and upcoming earnings declarations throughout the week, said the EBL analysis.
"Major macro indicators showed that the country is well placed to overcome the potential challenges from the deteriorating pandemic situation, which bolstered investors' confidence on the trading floor," it said.
Bangladesh's economy pulled off a blistering GDP growth in the last fiscal year which is expected to boost investors' confidence on the trading floor ahead, according to a leading broker.
Despite the second wave of the coronavirus pandemic, the economy pulled off a stunning 6.94 per cent growth in the last fiscal year, way higher than the initial estimate.
During this week, the DS30 index, comprising blue chips, also advanced 5.15 points to finish at 2,597 and the DSE Shariah Index (DSES) gained 13.37 points to close at 1,517.
The week's total turnover stood at Tk 66.18 billion on the prime bourse which was Tk 64.29 billion in the week before.
The daily turnover averaged out at Tk 13.23 billion on the country's premier bourse, which was 2.94 per cent higher than the previous week's average of Tk 12.85 billion.
Market capitalisation of the DSE also rose slightly to Tk 5,667 billion on Thursday, from Tk 5,621 billion in the week before.
Major sectors posted gains with the general insurance booked the highest gain of 3.60 per cent, followed by power (2.36 per cent), engineering (2.32 per cent), non-bank financial institutions (1.68 per cent), banking (0.40 per cent) and telecom (0.30 per cent).
Food & allied sector suffered a 2.56 per cent loss as the sector's heavyweight British American Tobacco shed 3.58 per cent alone.
Of the 386 issues traded, 235 advanced, 125 declined and 26 issues remained unchanged on the DSE trading floor.
Bangladesh Shipping Corporation was the most traded stock with shares worth Tk 4.31 billion changing hands, followed by Beximco, BATBC, Orion Pharma and Fortune Shoes.
Newly listed Union Insurance was the top gainer for the two consecutive weeks, posting a 60.15 per cent gain, while Queen South Textile Mills was the worst loser, shedding 11.46 per cent.
The Chittagong Stock Exchange (CSE) also rebounded, with the CSE All Share Price Index (CASPI) rising 193 points to settle at 20,769 while its Selective Categories Index (CSCX) gaining 113 points to close the week at 12,472.
Of the issues traded, 203 advanced, 119 declined and 23 remained unchanged on the CSE trading floor.
The port city's bourse traded 99.63 million shares and mutual fund units with turnover value of Tk 2.84 billion.
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