Stocks posted marginal gain for the two consecutive weeks of 2016 with higher participation as investors remained active on both sides of the trading fence.
Market insiders said expectation of better economic outlook amid eased political situation and rebounded export earnings might have lured the sideline investors to inject fresh funds in the market.
However, the market exhibited volatility during the week as some investors were cautious ahead of monetary policy announcement for the second half of the current fiscal year, which was unveiled Thursday.
The week featured five trading sessions as usual. Of them, first two sessions saw marginal correction while last three closed higher.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 18.87 points or 0.40 per cent to settle at 4,694.95.
However, the two other indices closed in the red. The DS30 index, comprising blue chips, fell 10.18 points or 0.57 per cent to finish at 1,761.11. The DSE Shariah Index dropped 7.95 points or 0.71 per cent to close at 1,118.95.
The port city bourse Chittagong Stock Exchange (CSE) ended marginally higher with its Selective Categories Index - CSCX - advancing 52.51 points or 0.60 per cent to end at 8,737.82.
IDLC Investments, a merchant bank, said, "Short-term and event driven issues clicked investment motives throughout the week. So, flat-ends sustained with equal buying and selling strength".
However, investors kept eyeing macroeconomic issues like World Bank's reiteration of expectation of 6.5 per cent growth in FY 2015-16, concurring development of gradual pick up in private sector credit growth, said the merchant bank.
Besides, continuous decline in crude oil price and declined commodity price in international market demand a revision of manufacturing sector outlook for 2016, it said.
"Those macroeconomic landscapes and gradual impact on overall economic structure ensured investors to inject fresh funds," the merchant bank said.
Accordingly, the bourse observed a significant improvement with the total turnover for the week stood at Tk 31.45 billion against Tk 27.13 billion in the week before.
The daily turnover averaged Tk 6.28 billion, which was 16 per cent higher than the previous week's average of Tk 5.42 billion.
The remained mostly focused on engineering, fuel and power and pharma - the sectors that accounted for 18 per cent, 15 per cent and 13 per cent respectively of the week's total turnover.
International Leasing Securities, a stockbroker, said, "Participation from the investors increased as expectation of better economic outlook amid eased political tension and rebounded export earnings lured the investors to become active in the market".
However, a major group of investors remained cautious regarding stability of the market and opted to book quick profit during the week, said the stockbroker.
LankaBangla Securities, a stockbroker, said, "Stocks edged higher riding on the back of small-cap companies".
Price of majority of the financial institutions (except life insurance companies) increased during the week.
Of the market cap leaders, market capitalization of Lafarge Surma Cement, Titas Gas, and Olympic Industries declined by 2.8 per cent, 2.2 per cent, and 3.2 per cent respectively.
Royal Capital, a stockbroker, said, the market has beaten the risk level confirming 0.40 per cent return at 0.29 per cent risk which evidenced good performance of the market.
"Investors were on buying mood and some of them were followed 'wait-and-see' strategy with some future expectations, probable market impact of monetary policy of the central bank," said the stockbroker.
The stockbroker noted that return to risk ratio tracked with better market performance per unit of risk level. But the market growth has slumped in compared to last week. Market risk reduced by 37.96 per cent last week compared to previous week.
Gainers outpaced losers as out of 328 issues traded, 197 closed higher, 113 lower and 18 remained unchanged on the DSE trading floor during the week.
The market capitalisation of the DSE edged up by 0.49 per cent as it was Tk 3,183.79 billion on the opening day of the week and it stood at Tk 3,199.26 billion on closing day of the week.
United Power Generation and Distribution Company dominated the week's turnover chart for the second straight week with shares worth Tk 1.29 billion changing hands followed by BD Thai Aluminium, Emerald Oil, IT Consultants and City Bank.
United Insurance was the week's best performer, posting a rise of 30.08 per cent while Anwar Galvanizing was the week's worst loser, slumping by 18.89 per cent.
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