The stock market witnessed yet another brisk week that ended Thursday with significant improvement in turnover as investors were on buying spree amid optimism.
Analysts said the interest rate cut on savings instruments, falling rates of deposit interest and restoration of political stability coupled with budgetary expectations spurred stocks rally.
The week featured five trading sessions as usual. Of those, the market closed higher four sessions while one session saw slight correction.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), crossed the 4,400-mark and ended at 4,483.28 points, gaining 168.39 points or 3.90 per cent. With this week, the market closed higher in third consecutive weeks in a row.
The two other indices also closed higher. The DS30 index, comprising blue chips, gained 59.72 points or 3.68 per cent to close at 1,683.43 points. The DSE Shariah Index rose 36.45 points or 3.48 per cent to close at 1,082.93 points.
The port city bourse Chittagong Stock Exchange (CSE) also ended higher, with its Selective Categories Index - CSCX - gained 325 points or 4.0 per cent to close the week at 8,458 points.
Turnover, one of the major market indicators, also shot up significantly last week on the prime bourse. The total turnover for the week stood at Tk 38.36 billion against Tk 29.80 billion the week before.
The daily turnover for the week averaged Tk 7.67 billion, registering an increase of 29 per cent over the previous week's averaged Tk 5.95 billion.
The investors' attention remained mostly focused on power, pharma and engineering - the sectors that accounted for 23 per cent, 16 per cent and 15 per cent respectively of the week's total turnover.
"As political worries sedated for the time being and rates on savings certificate cut as well as expectation for budgetary stimulus came on the cards, market was offered with a place to rebound," said IDLC Investments, a merchant bank, in its weekly analysis.
"The many positives spurred confidence in investors' sentiment pushing them forward to the market. Undervaluation in many issues also pulled them to the market," said the merchant bank.
LankaBangla Securities, a leading stock broker, said, "Investors' sentiment got somewhat positive amidst calmness in political front and upcoming budget expectations".
Moreover, expectation on enhanced economic ties with neighbouring countries also made investors feel happy about broad economic activity, said the stock broker.
However, small caps were in the highest gainer list last week. Financial stocks continued to provide return where NBFIs and banking stocks gained 6.9 per cent and 4.1 per cent market capitalisation respectively.
Among other large-cap sectors, fuel and power advanced by 5.37 per cent. Pharmaceuticals moved up 1.63 per cent. Telecommunication gained 1.12 per cent while cement and food and allied saw correction of 0.48 per cent and 0.21 per cent respectively over the week.
The gainers took a strong lead over the losers as out of 323 issues traded, 237 advanced, 70 declined and 16 remained unchanged on the DSE trading floor.
Four listed companies - Khulna Power Company Ltd (KPCL), Keya Cosmetics, BD Welding and National Bank recommended dividend last week while two Mutual Funds - MBL First Mutual Fund and AIBL First Mutual Fund failed to recommend any dividend.
The market capitalisation of the DSE went up by 2.57 per cent as it was Tk 3,097.82 billion on the opening day of the week and it stood at Tk 3,177.46 billion on closing day of the week.
KPCL was the week's top turnover leader with shares worth Tk 2.08 billion changing hands during the week followed by United Power, BSCCL, RAK Ceramics and Saif Powertec.
Shurwid Industries was the week's best performer, posting a rise of 33.51 per cent while Wata Chemicals was the week's worst loser, plunging by 19.15 per cent.
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