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Weekly market review

Stocks extend rally to hit record highs

Average turnover jumps to Tk 23.38b on DSE


BABUL BARMAN | August 07, 2021 00:00:00


Stocks extended their rally for the seven straight weeks that ended on Thursday.

All three indices and market-cap surged to new peaks amid high expectations among investors.

The week featured only three trading days as the market remained closed on Sunday and Wednesday in line with the banks. All three sessions closed higher.

Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), soared 170.82 points or 2.66 per cent to settle at 6,596, highest since its inception more than eight years back on January 27, 2013.

DSEX added 543 points in the past seven consecutive weeks as institutional investors continued to put fresh funds into stocks despite virus worries.

Along with the core index, two other indices---the DS30 index, a group of 30 prominent companies and the DSE Shariah Index (DSES) -- followed the suit to close at historical highs of 2,385 and 1,439, after gaining 58.02 points and 38.30 points respectively.

The DSE launched the DS30 index on January 27, 2013 with a base point of 1,460.30 while DSE Shariah Index was introduced on January 20, 2014 with a base point of 941.27.

The market capitalisation of the DSE also hit a fresh all-time high at Tk 5,443 billion on Thursday, surpassing the previous day's record high of Tk 5,415 billion.

The week's total turnover on the DSE stood at Tk 70.14 billion against Tk 71.28 billion in the week before as last week saw three trading days against previous week's five.

The daily turnover averaged out at Tk 23.38 billion on the DSE, which was 64 per cent higher than the previous week's average of Tk 14.25 billion.

Market experts said stocks continued their record-breaking rally as investors are putting fresh funds on stocks as they hope the index will rise further after the Bangladesh Bank unveiled another expansionary monetary policy.

The reopening of export-oriented factories and other industries encouraged the investors and they hope the economy would return to normalcy, they said.

Investors are rushing towards the capital market amid lower returns on the money market and limited scope of investment in other instruments, said a merchant banker.

The Chittagong Stock Exchange (CSE) also edged higher with the CSE All Share Price Index - CASPI -soaring 553 points to settle at 19,188 and the Selective Categories Index - CSCX rising 323 points to close at 11,513.

Of the issues traded, 269 advanced, 59 declined and 12 remained unchanged on the CSE trading floor.

The port city's bourse traded 110.27 million shares and mutual fund units with turnover value of Tk 2.34 billion.

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