Stocks rebounded last week that ended Thursday, snapping a three-week losing streak, as enthusiastic investors went on buying spree on lucrative stocks.
Brokers said the price indices rose as retail investors started buying shares after year-end earnings and dividend declarations by most of the listed companies.
"The earning declarations helped investors to make an assessment about their future investment, which created a buying pressure in the market," said an analyst at a leading brokerage firm.
The week featured five trading sessions as usual. Of them, first two sessions saw marginal correction while the last three nudged higher.
Week-on-week, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), went up by 80.76 points or 1.34 per cent to finish at 6,099 points.
The two other indices -- the DS30 index and the DSE Shariah Index (DSES) - closed at 2,201 and 1,329 points, after advancing 27.57 points and 12.63 points respectively.
"Such healthy gain in market indices was backed by considerable gain in fuel & power, pharmaceuticals, engineering and banking sector stocks," commented City Bank Capital Resources, a merchant bank, in its weekly analysis.
Fuel and power sector posted the highest gain of 1.60 per cent, followed by pharmaceuticals with 1.50 per cent, engineering 1.20 per cent and bank 1.10 per cent.
The port city bourse Chittagong Stock Exchange (CSE) also ticked higher after three weeks. The Selective Categories Index, CSCX, advanced 190 points or 1.68 per cent to end at 11,438.
EBL Securities, a stockbroker, said, "The investors were optimistic regarding the market as June closing stock declared earnings and dividend closely to the expectation of the investors".
Sheltech Brokerage said, "The market showed strong recovery as several June-closing shares tend to retaliate with robust volume after a prolonged correction".
"The optimistic drive was mainly initiated by the investors' buying spree on the banking sector as the stocks became lucrative over the last few weeks' price fall," commented International Leasing Securities, in an analysis.
The stockbroker noted that some of the investors went for rebalancing their portfolios on the June closing stocks especially textile, fuel & power, pharmaceuticals and engineering sectors after observing the year-end corporate declarations.
The total turnover in the week amounted to Tk 30.27 billion on the DSE, which was 6.28 per cent higher than the previous week's Tk 28.48 billion.
Block trade contributed 3.0 per cent to the total weekly turnover; where stocks like Dhaka Insurance, Shahjalal Islami Bank, BRAC Bank, City Bank and Delta Brac Housing Finance dominated the block trade board.
The daily average turnover rose to Tk 6.05 billion, which was 6.28 per cent higher than the previous week's average of Tk 5.70 billion.
Banking sector kept its dominance over the transaction chart, grabbing 31 per cent of the week's total transaction, followed by financial institutions 12 per cent and engineering 11 per cent.
Out of 336 issues traded, 192 closed higher, 127 ended lower and 17 issues remained unchanged on the DSE trading floor during the week.
The market capitalisation of the DSE edged up by 0.55 per cent as it was Tk 4,100 billion on the opening day of the week and it stood at Tk 4,123 billion on closing day of the week.
LankaBangla Finance topped the week's turnover chart with 20.88 million shares worth Tk 1.33 billion changing hands followed by Brac Bank with Tk 959 million, City Bank Tk 831 million, Exim Bank Tk 663 million and BBS Cables Tk 640 million.
Salvo Chemicals was the week's best performer, posting a gain of 16.92 per cent while Hakkani Pulp & Paper was the week's worst loser.
The company share price dipped by 29.61 per cent following its no dividend recommendation.
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