Stocks saw a big jump last week, with the key index of the Dhaka Stock Exchange (DSE) hitting a 16-month high, as investors put fresh bet on the market amid enthusiasm over Robi's debut trading.
Week-on-week, DSEX, the core index of the Dhaka Stock Exchange (DSE), soared 110.33 points or 2.16 per cent to settle at 5,218. It has been the highest since August 25, 2019.
The DSEX added nearly 350 points in the last four straight weeks while market capitalization surged Tk 352 billion during the period under review.
Robi Axiata, the country's second-largest mobile phone operator after Grameenphone, made a flying trading debut on Thursday, as its share jumped 50 per cent to close at Tk 15, the highest permissible limit.
Its stock hit the upper circuit breaker as many primary share holders were unwilling to sell their Robi stock on future expectations of higher price.
Market analysts said trading debut of biggest-ever issue Robi, buoyed by general investors' buying spree and increased participation from institutional investors, particularly in the last trading day of the week.
They also attribute the recent directive given by the prime minister to ministries to formulate another stimulus package, the finance minister's relentless efforts to buoy up the market and the decisive and tough measures initiated by the securities regulator in recent months to the ongoing turnaround of the market.
"Spontaneous participation amid high expectations lured the institutional investors and for placing fresh bet on large-cap stocks," said a merchant banker.
He noted that factors like lower returns on the money market amid liquidity glut, hope for the Covid-19 vaccine and strong regulatory actions against wrongdoers prompted sideline investors to inject fresh funds into stocks.
The bargain hunters continued their buying appetite on large-cap issues amid growing confidence stemming from regulatory actions and the gradual traction in economic activities, said a leading broker.
The regulator is continuing its effort to enhance the market depth through listing of large-cap companies having good fundamentals and the news that some big companies are waiting for necessary approval for listing also tempted the investors to stay afloat, he said.
Two other indices also soared. The DSE 30 Index comprising blue chips jumped 78.12 points to finish at 1,876 and the DSE Shariah Index (DSES) rose 23.58 points to close at 1,203.
The market saw five trading days as usual of which three sessions closed higher while two faced correction.
The daily turnover averaged Tk 11.24 billion, which was 23 per cent higher than the previous week's average of Tk 9.15 billion.
The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index - CASPI -soaring 319 points to settle at 14,989 and the Selective Categories Index - CSCX advancing 199 points to close at 9,036.
Of the issues traded, 152 declined, 104 advanced and 60 remained unchanged on the CSE.
© 2024 - All Rights with The Financial Express
