Stocks extended rally for the second consecutive week, the last week of the just concluded fiscal year, as bargain hunters continued their buying binge on major sector issues ahead of the complete lockdown.
The government enforced countrywide week-long strict lockdown started from Thursday to flatten the uprising curve of Covid-19 infections in the country.
The week featured four trading sessions as the market remained closed on July 1 due to bank holiday. The first session lost more than 100 points due to virus-induced lockdown fears. However, next three sessions ended higher.
Week-on-week, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), went up by 57.65 points or 0.95 per cent to settle at 41-month high at 6,150.
The market 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.
Market experts said the bargain hunters remained active in the market as the government has kept the undisclosed money investment opportunity in capital market in the new fiscal year and regulatory decision to keep the market open during the lockdown.
Removal of the floor price restriction from all listed securities, lower returns from the money market and several regulatory reforms to build a vibrant capital market contributed to the index reaching its 41-month highest level, they said.
The bargain hunters stayed afloat riding on the news that the government has kept opportunity of legalising undisclosed income in the stock market investment, commented International Leasing Securities.
The stockbroker noted that the regulatory decision to keep the market open in line with the banks amid countrywide striker lockdown had positively impacted the investors' sentiment.
However, some investors opted for liquidating their investment amid alarming rise of virus infections and deaths in the country, said the stockbroker.
The textile sector kept its dominance in the turnover board, grabbing 21 per cent of the week's total turnover, followed by banking with 11 per cent and pharmaceuticals 10 per cent.
Two other indices also edged higher with the DSE30 Index, comprising blue chips, advanced 8.85 points to finish at 2,208 and the DSE Shariah Index (DSES) rose 12.90 points to close at 1,314.
The week's total turnover on the DSE, however, fell sharply to Tk 56.24 billion against Tk 95.24 billion in the week before as last week saw four trading days instead previous week's five.
The daily turnover averaged out at Tk 14.06 billion, which was 26 per cent lower than the previous week's average of Tk 19.04 billion.
Turnover fell sharply as investors adopted a cautious stance amid the strictest lockdown for taming the surging corona virus infection rate, said a merchant banker.
Despite the imposition of strict lockdown, a section of investors kept buying pressure throughout the week due to June closing, commented EBL Securities, in weekly market analysis.
The port city's bourse traded 120 million shares and mutual fund units with turnover value of Tk 3.86 billion.
A new issue - Sonali Life Insurance -- made trading debut in the last session of the week and its share price jumped 10 per cent - the highest allowable limit over its offer price of Tk 10 each.
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