Stocks extended rally in the outgoing week with the core index of the major bourse soared 558 points in the past six straight weeks as banking sector kept shining.
Market operators said investors are hopeful about the market as stocks have been in a rising trend for the last few weeks amid easing virus worries, lower returns from the money market coupled with positive expectations from the upcoming budget.
The week saw five trading days. Of them, three sessions closed higher while two faced correction.
Week-on-week, DSEX, the core index of the Dhaka Stock Exchange (DSE), went up by 62.57 points or 1.09 per cent to settle at 5,813. DSEX added more than 558 points in the past six straight weeks.
Two other indices, however, closed in the red with the DSE30 Index, comprising blue chips, shed 8.40 points to finish at 2,178 and the DSE Shariah Index (DSES) fell 2.33 points to close at 1,272.
The week's total turnover on the prime bourse jumped to Tk 84.24 billion which is more than doubled, from Tk 42.08 billion in the week before. However, last week saw five trading days instead of previous week's three sessions.
The daily turnover averaged out at Tk 16.85 billion, which was 20 per cent higher than the previous week's average of Tk 14.03 billion.
The investor enthusiasm sustained for the sixth straight weeks amid rising turnover as institutional largely active on the market, said a merchant banker.
"Continuous growth in turnover pushed the investors' confidence to a new level, and high trading volume suggested that institutional investors are largely active in the market," he said.
He noted that investors continued their buying interest on selective large-cap stocks amid growing confidence to the market as recent market momentum showed optimism.
The market rally came on the back of positive macroeconomic indicators in the country like remittance, foreign reserve coupled with better than expected earnings declarations despite pandemic, said a top broker.
He noted that easing virus worries, earnings upsurge despite pandemic and satisfactory dividend declarations, boosted the investors' confidence.
Stocks soared driven by bank and financial institutions stocks as investors regained their confidence in the ailing financial sector based on earnings surprises, commented EBL Securities.
Also, the proposal to cut corporate tax by 2.50 per cent to 22.50 per cent for production-oriented listed firms also strengthened the investors' confidence about the upcoming future of the market, said the stockbroker.
The banking sector dominated the turnover board and captured around 18 per cent of the total weekly turnover, closely followed by general insurance with 17 per cent and miscellaneous 12 per cent.
Among the major sectors, banking generated the highest return, gaining 4.80 per cent, followed by general insurance with 2.20 per cent, food 2.0 per cent, telecom 1.60 per cent and financial institutions 0.60 per cent.
On the other hands, cement, power and pharmaceuticals sectors lost 1.60 per cent, 0.70 per cent and 0.50 per cent respectively.
Gainers took a modest lead over the losers, as out of 371 issues traded, 169 advanced, 149 declined and 53 remained unchanged on the DSE trading floor.
Beximco - the flagship company of Beximco Group - was the most- traded stock with shares worth Tk 7.0 billion changing hands, followed by Prime Bank (Tk 2.55 billion), Saif Powertec (Tk 2.48 billion), British American Tobacco (Tk 2.0 billion) and LankaBangla Finance (Tk 1.91 billion).
The Chittagong Stock Exchange (CSE) also kept rising with the CSE All Share Price Index - CASPI -gaining 179 points to settle at 16,837 and the Selective Categories Index - CSCX advancing 106 points to close at 10,149.
Of the issues traded, 164 advanced, 121 declined and 44 remained unchanged on the CSE trading floor.
The port city's bourse traded 199.32 million shares and mutual fund units with turnover value of Tk 4.74 billion.
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