Stocks took a sharp flight with significant improvement in turnover last week, breaking straight four weeks of losing streak despite 60-hour countrywide shutdown enforced by opposition parties.
Market operators said the investors went for buying spree almost throughout the week as the investors became hopeful over dialogue between the two major political parties for the formation of a polls-time government.
The week witnessed five trading sessions as usual. Of them, market made an impressive gain for four trading sessions, while one session lost marginally.
The prime index of the Dhaka Stock Exchange (DSE)--DSEX--crossed 3,900 point-mark and ended the week at 3,967.73 points, gaining 168.46 points or 4.43 per cent.
The DS30 Index consisting of blue chips also gained sharply by 47.11 points or 3.46 per cent to end the week at 1,408.15.
The Chittagong Stock Exchange (CSE) also saw sharp rise with its Selective Category Index gaining 319.91 points or 4.29 per cent to close the week at 7,762.23.
Liquidity improved significantly during the week. The total turnover value for the week stood at Tk 17.46 billion on DSE compared to previous week's total value of Tk 9.93 billion.
The daily average turnover value stood at Tk 3.49 billion, which was 75.8 per cent higher than the previous week's average of Tk 1.98 billion.
"Mixed market scenario was observed amid increased participation. Earnings disclosures and dynamic political vibes highlighted this week's market," commented IDLC Investments in its weekly market analysis.
Meanwhile, scrip-wise swings were practical alongside investors' preference in fundamentally strong and lucrative scrips centering on recent earnings declarations, said the merchant bank.
"The week mostly showcased impact of investors' reaction centering over quarterly earnings, macroeconomic phenomenon and political swings," the merchant bank said.
"With the stable money market situation and expected dialogue between two major political parties, investors turned their attention back to recent corporate earnings declarations. Earnings declarations by listed entities encouraged investors to hunt to cheap stocks," LankaBangla Securities said.
Many believe that corporate earnings have bottomed out and once the issue of national election is over, corporations will get boost in their earnings, said the stock broker
"So this sort of chaotic environment provides opportunity to buy good stocks at cheap prices."
On front of monetary side, recent fall in interest rate in banking stock has also been favouring stocks prices by boosting the relative appeal of stocks. This falling interest rate will also have a positive impact on corporate profitability, said the stock broker.
"Encouraging growth in export and import is giving positive signal in investors' mind toward economic outlook," the stock broker added.
The gainers took a modest lead over the losers as out of 293 issues traded during the week, 190 advanced, 97 declined and 6 remained unchanged on the prime bourse.
Among the major sectors, banks rallied in the week with 6.72 per cent gain, closely followed by telecommunications which advanced 6.63 per cent. NBFIs and fuel & power gained 3.93 per cent and 2.46 per cent respectively. Pharmaceuticals edged 2.05 per cent higher.
The market capitalisation of the DSE went up by 3.25 per cent, as it was Tk 2,433.68 billion at the opening day of the week and it stood at Tk 2,512.66 billion at the closing day of the week.
A total of 33 listed companies whose year-closing were on June 30, 2013, made corporate declarations during the week.
Generation Next Fashion became the week's top turnover leader with shares worth Tk 991.03 million changing hands followed by Envoy Textile, Argon Denim, UCBL and Beximco Limited respectively.
Premier Bank was the week's top gainer, posting a rise of 27.78 per cent while Delta Life Insurance was the week's worst losers, slumping by 94.88 per cent.
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