Stocks extended their bull run for the 12 consecutive weeks that ended Thursday as investors continued their buying spree on large-cap stocks riding on hopes and excitements.
Analysts said the Dhaka bourse passed a remarkable week as its key index crossed the 5,500-point mark with the turnover crossing Tk 20 billion-mark for the first time in more than six years during the week.
During the 12 weeks rally, DSEX, the prime index of the Dhaka Stock Exchange (DSE), registered a cumulative gain of 789 points or 17 per cent.
"The recent growth of turnover and index is reflected that the investors' confidence in the market is coming back," said an analyst at a leading brokerage firm.
"However, investors should carefully invest in a rising market and should analyse the fundamentals of securities beforehand," he cautioned.
The DSE authorities at a press briefing on Wednesday also advised the investors to invest in the rising market carefully.
The week witnessed five trading sessions as usual. Of them, first three sessions rose substantially, fourth session faced major correction while the last one closed flat.
Week-on-week, the prime index of the DSE jumped 191.19 points or 3.58 per cent to settle at 5,342.88.
"Even though the week saw a significant rise of the prime index, the index fluctuated in last two days and went through a correction phase," said LankaBangla Securities, a stockbroker, in an analysis.
The stockbroker noted that the week's rally was largely supported by the large-cap stocks under banks, NBFIs and several listed MNCs amid earnings and dividend expectation.
The heavyweight bank and non-bank financial institutions sectors posted the highest gain of 7.24 per cent and 6.76 per cent respectively in the last week.
The two other indices also ended higher. The DS30 index, comprising blue chips, skyrocketed by 73.20 points or 3.83 per cent to finish at 1,983.71. The DSE Shariah Index rose 32.54 points or 2.62 per cent to close at 1,275.55.
International Leasing Securities, a stockbroker, said, "Cheerful investors participation backed by hopes coupled with continued buoyancy lured the investors to take position while the shaky investors booked some profits in the last two sessions of the week".
The stockbroker noted that the optimistic outlook regarding future market sentiment might have cheered the investors to inject fresh funds in the market to keep the stock market vibrant.
The port city bourse, Chittagong Stock Exchange (CSE), also maintained the upward trend with its Selective Categories Index, CSCX, jumping 337 points or 3.38 per cent to close at 10,286.57.
"Stocks witnessed sharp gain as the optimistic investors continued their buying spree amid growing confidence," said EBL Securities, a stockbroker, in its weekly analysis.
Total turnover of the week soared to Tk 89.78 billion which was Tk 71.40 billion in the week before.
The daily turnover averaged at Tk 17.96 billion, registering an increase of 25.75 per cent over the previous week's average of Tk 14.28 billion. It was also the highest daily average turnover in a single-week in the last five years.
City Bank Capital Resources, a merchant bank, said, "Investors mainly concentrated on engineering, bank, fuel and power, pharma, textile, NBFIs and miscellaneous sector stocks, which also continued to hold the position as top contributors in turnover chart".
The gainers took a strong lead over the losers as out of 329 issues traded, 203 closed higher, 117 closed lower and 9 remained unchanged on the DSE trading floor.
The total market capitalisation of the DSE also soared 2.61 per cent last week as it was Tk 3,592.69 billion on the opening day of the week, while it stood at Tk 3,686.53 billion on closing day of the week.
Beximco dominated the week's turnover chart for the second straight week with 107.88 million shares of Tk 3.97 billion changing hands, followed by Baraka Power Tk 2.66 billion, LankaBangla Finance Tk 2.10 billion, Bangladesh Building Systems Tk 1.68 billion and IFAD Autos Tk 1.67 billion.
Baraka Power was the week's best performer, posting a 26.40 per cent gain, while Imam Button was the worst loser, slumping by 11.48 per cent.
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