The bullish spell continued for four straight weeks on the Dhaka Stock Exchange (DSE) with its prime index crossing the 5,000-point-mark for the first time since inception in January 2103, powered by investors' buying spree.
Market insiders attributed investors' growing confidence to the market buoyancy.
"Single digit interests on deposits, favourable economic factors and political stability are encouraging investors to make fresh investments," said an analyst.
Throughout the week, a handful of large cap stocks dominated the bourse, helping the index exceed the 5,000 point-mark.
Week-on-week, the DSEX gained a staggering 160.73 points or 3.30 per cent to close at 5,026.93 points. It is the highest level of DSEX since its inception on January 28, 2013.
The two other indices also closed higher. The DSE30 index went up by 50.32 points or 2.65 per cent to close at 1,949.64 points. The DSE Shariah Index gained 34.36 points or 2.99 per cent to close at 1,181.68 points.
The port city bourse Chittagong Stock Exchange (CSE) also saw steep gain last week with its Selective Categories Index-CSCX-soaring 358.49 points or 3.94 per cent to close at 9,439.05 points.
Trading remained vibrant throughout the week. Total turnover on DSE stood at Tk 50.26 billion which was Tk 45.98 billion in a week before. Last week's total turnover was the highest weekly turnover in 2014.
The average daily turnover crossed double-digit last week. The daily turnover for the week averaged Tk 10.05 billion, registering an increase of 9.30 per cent over the previous week's average Tk 9.19 billion.
Engineering, pharmaceuticals and power stocks grabbed the investors' attention last week - the sectors that accounted for 17 per cent, 16 per cent and 14 per cent respectively of the week's total turnover.
"Current market scenario indicates investors' growing confidence about the long term bullishness of the market with burgeoning liquidity and economic activities," said LankaBangla Securities, in its weekly analysis.
Fixed Deposit Receipt (FDR) rate has been on the wane for some time now, which might be alluring investors to invest in equity, said the stock broker.
Other factors such as stable economic outlook and relative calm in politics have attracted some global top fund managers, the stock broker added.
IDLC Investments said: "Last week of the month featured with strong turnover and persistent enthusiasm from the investors".
All the five sessions closed in green while investors continued to inject fresh funds and return chasing behavior sustained," said the investments bank.
The new high of index has offered confidence for retail participants, said the merchant bank.
Akter H Sannamat, managing director of Union Capital said: "Recent improvements in market situation seem to heighten investors' confidence and pull previously inactive investors, thus improving overall activity".
 He, however, said that the new investors should carefully invest in a booming market and should analyse the fundamentals of securities before they put cash in stocks.
Among the major sectors, telecommunication posted the highest gain of 8.82 per cent followed by banks and NBFIs which advanced by 4.65 per cent and 3.03 per cent respectively.
Fuel and power also went up by 2.95 per cent. Food and allied and pharmaceuticals retraced 3.0 per cent and 0.80 per cent respectively.
Gainers outpaced losers as out of 310 issues traded, 194 advanced, 106 declined 10 remained unchanged on DSE floor during the week.
Five listed companies - United Airways, Eastern Housing, Bangladesh Building Systems, Bangas and Fareast Islami Life Insurance declared corporate declaration during the week.
The market capitalisation of the DSE went up by 2.83 per cent as it was Tk 3,272.19 billion on the opening day of the week and it stood at Tk 3,364.93 billion on closing day of the week.
MJL Bangladesh dominated the week's top turnover chart for the third week straight with shares worth Tk 2.33 billion changing hands followed by Beximco, BSRM Steels, RSRM Steels and Beximco Pharma.
RAK Ceramics was the week's top gainer, posting a rise of 37.98 per cent while Grameen Mutual One was the week's worst loser, slumping by 11.48 per cent.
New issue Ratanpur Steel Re-rolling Mills (RSRM) made debut trading last week. The steel manufacture's share price rose by 93.25 per cent or Tk 37.1 per share from its offer price of Tk 40 on the opening day at DSE.
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Continued bullish run attracts global fund managers
Babul Barman | Published: September 27, 2014 00:00:00 | Updated: November 30, 2024 06:01:00
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