Stocks extended rally for the third consecutive week, the first week of the new fiscal year, as bargain hunters continued their buying appetite on major sector issues despite virus worries.
The government extended the countrywide strict lockdown until July 14 to flatten the uprising curve of Covid-19 infections. Trading will remain closed on Sunday (July 11) and trading days will be from Monday to Thursday for the next week as per the banking schedule.
The week featured four trading days like previous week as the market remain closed on July 4 (Sunday) in line with the banks. Of them, two sessions ended higher while two saw marginal correction.
Week-on-week, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), went up by 62.29 points or 1.01 per cent to settle at 6,212. DSEX added 160 points in the past three consecutive weeks.
Market experts said the core index holds its firm position at above 6,000 points marks as buying support added strength to the equity indices despite worries over virus-infused shock to the country's economy.
Budgetary measures, removal of the floor price restriction, lower returns from the money market and several regulatory reforms to build a vibrant capital market contributed to the index crossing 6200-mark, said a merchant banker.
He noted that the present stock market regulator took some market supportive measures in the past few months like formation of capital market stabilisation fund rules, SME board, new IPO allotment rules and re-listing of OTC companies, which boosted the investors' confidence in the market.
The regulatory efforts to keep the market open in line with the banks amid countrywide strict lockdown had positively impacted the investors' sentiment, commented International Leasing Securities, in its weekly market analysis.
The investors are hopeful about the market amidst the government decision of keeping the opportunity of whitening undisclosed money in the capital market in the new fiscal year, said the stockbroker.
The stockbroker noted that investors showed enthusiasm as the securities regulator approved the capital market stabilisation fund with the investors' unclaimed shares and cash with the listed companies which are expected to be Tk 210 billion.
Despite the ongoing strict lockdown, investors continued to show buying pressures, particularly in the textile sector as the investors are hopeful about the ongoing global apparel market recovery, commented EBL Securities.
The investors' interest in textile, mutual fund, pharma, financial institution and engineering sectors led the benchmark index to cross 6,200 points.
The textile sector kept its dominance in the turnover board, grabbing 19 per cent of the week's total turnover, followed by pharma with 12.2 per cent and miscellaneous 12 per cent.
Two other indices also ended higher with the DSE30 Index, comprising blue chips, advanced 39.83 points to finish at 2,248 and the DSE Shariah Index (DSES) rose 26.79 points to close at 1,341.
The week's total turnover on the DSE also rose to Tk 64.10 billion against Tk 56.25 billion in the week before as the last week saw four sessions like the previous week.
The daily turnover averaged out at Tk 16.02 billion, which was 14 per cent higher than the previous week's average of Tk 14.06 billion.
Market capitalisation of the prime bourse also rose to Tk 5,171 billion, up from Tk 5,142 billion in the week before.
Among the major sectors - mutual fund generated the highest return of 6.30 per cent, followed by textile with 4.10 per cent and pahram 2.90 per cent while general insurance, life insurance and banking sectors suffered losses of 4.40 per cent, 4.20 per cent and 1.40 per cent respectively.
Of the 376 issues traded, 230 advanced, 136 declined and 10 issues remained unchanged on the DSE trading floor during the week.
Beximco-the flagship company of Beximco Group-was the most traded stock with shares worth Tk 4.36 billion changing hands, making up nearly 7.0 per cent of the week's total turnover.
It was followed followed by LafargeHolcim, Keya Cosmetics, ML Dyeing and LankaBangla Finance.
The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index - CASPI -soaring 207 points to settle at 18,002 and the Selective Categories Index - CSCX rising 116 points to close at 10,811.
Of the issues traded, 213 advanced, 112 declined and 12 remained unchanged on the CSE trading floor.
The port city's bourse traded 119.11 million shares and mutual fund units with turnover value of Tk 2.86 billion.
babulfexpress@gmail.com