The equities index extended the winning streak last week with increasing participation of investors with their sights set on rallying stocks as political tensions subsided after the national election.
Buyers dominated the trading floor since investors were getting optimistic about a gradual improvement in tackling the prevailing challenges impeding the market's momentum, market operators said.
Market regulator Bangladesh Securities and Exchange Commission (BSEC) on Thursday lifted the floor price restrictions on all but 35 stocks after 18 months. The measure will take effect tomorrow (Sunday).
The upper and lower limits of the circuit breaker [prices will be allowed to move 10 per cent upward or downward] will apply to all securities except the 35 companies.
Analysts welcomed the regulatory move and said the market might see volatility in the short term, but the market would take its own course ultimately.
Owing to withdrawal of the artificial price control mechanism, liquidity in the market would increase and investors would get attractive returns again, said a stockbroker.
Such restrictions should not be repeated, if the country wanted a vibrant capital market, he said.
Of the five trading days last week, the first four sessions saw gain while the last one saw the market close lower despite high participation of investors.
The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), finally settled 35.06 points or 0.56 per cent higher at 6,336.76. The DSEX added more than 92 points in the past two consecutive weeks.
Top positive index contributors were Beacon Pharma, Orion Infusion, Khan Brothers PP Woven Bag Industries and Square Pharma as they jointly accounted for 22-point rise in the key index.
The DS30 Index, which consists of blue-chip companies, gained nearly 12 points to 2,129 while the DSES index, which represents Shariah-based companies, rose more than 12 points to 1,388.
According to EBL Securities, the market had sustained its positive vibe after the subdued market rebounded from its gloomy phase, owing to expectations regarding a gradual improvement in tacking the prevailing challenges impeding the market's momentum.
However, cautious investors engaged in profit booking in the final session of the week that pulled reins on the heated-up market following consecutive sessions of buy dominance across the trading board, said the stockbroker.
The participation of investors was also high, as the total turnover of the week stood at Tk 36.37 billion, up from Tk 21.98 billion in the week before.
Accordingly, the average daily turnover reached Tk 7.27 billion, which was more than 32 per cent higher than the previous week's average of Tk 5.49 billion.
Majority of the traded shares saw price appreciation, as out of 384 issues traded, 94 closed higher, 84 lower, and 209 remained unchanged on the DSE.
Most of the sectors ended higher, with travel & leisure posting the highest gain, followed by pharma, cement and miscellaneous sectors. Banking, engineering, financial institutions and mutual funds saw price erosion.
The pharma sector dominated the weekly turnover chart, accounting for 13 per cent of the week's total trade, followed by general insurance and engineering sectors.
Orion Infusion became the most-traded stock with shares worth Tk 1.76 billion changing hands. It was followed by Sea Pearl Beach Resort, Bangladesh Shipping Corporation, Deshbandhu Polymer and BD Thai Aluminum.
Orion Infusion was the week's top gainer, soaring 25.82 per cent, while FAS Finance was the worst loser with 9.68 per cent.
The Chittagong Stock Exchange (CSE) also closed higher with its All Share Price Index (CASPI) gaining 141 points to settle at 18,806 and the Selective Categories Index (CSCX) gaining 84 points to close at 11,247.
The port city bourse traded 13.08 million shares and mutual fund units with a turnover volume of Tk 531 million.
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