The benchmark equity index rebounded in the outgoing week from a sharp fall in the previous week, as bargain hunters snapped up lucrative stocks that saw deep correction following the floor price removal.
Higher-than-expected quarterly earnings of some companies and lucrative price level also prompted investors to inject fresh funds into selective stocks.
More than 100 listed companies disclosed their quarterly earnings during the week and investors acted on those accordingly.
The recovery of the market index was mostly driven by large-cap stocks that posted better quarterly earnings. Among them are Beacon Pharma, Beximco Pharma, Orion Infusion, Malek Spinning, and Aftab Automobiles.
These five stocks accounted for half of the weekly gain, while the benchmark DSEX index of the Dhaka Stock Exchange (DSE), went up by more than 57 points or 0.94 per cent to settle at 6,214. It lost 180 points in the previous week.
The market faced selling pressure on the first trading day. But the optimistic investors took control of the trading floor in the subsequent sessions and their buying spree continued across the trading board.
According to EBL Securities, buyers took control of the trading floor in the last four sessions, prompted by the allure of potential quick gains owing to rebounding optimism across the trading board.
Many investors decided to pour fresh funds into equities, adding further strength to the current rallies in sector-specific issues, said the stockbroker.
The buoyant investors showed buying appetite on the lucrative trendy stocks with favourable earnings disclosure for the recently ended quarter, said a leading broker.
"Many stock prices came down to a lucrative price level after sharp corrections in the week before which encouraged investors to put fresh funds," he added.
The companies which reported higher earnings growth in the recently ended quarter saw their price jump during the week.
For example, Malek Spinning's stock price soared 34 per cent to close at Tk 33.10 on Thursday as the textile maker's half-yearly profit jumped 495 per cent year-on-year to Tk 774 million through December last year.
Beacon Pharma and Beximco Pharma's stock also soared 8.40 per cent and 4 per cent respectively during the week, riding on 25 per cent and 13 per cent profit growth for July-December.
Investors' buying pressure was spurred on sectors, particularly textile, cement, engineering, general insurance, IT and banking sectors while small-cap jute, ceramic, travel & leisure and tannery saw price correction.
The participation of investors, however, dropped slightly to Tk 45.85 billion this week, down from Tk 48.52 billion in the week before.
Accordingly, the average daily turnover stood at Tk 9.17 billion, which was 5.5 per cent lower than the previous week's average of Tk 9.70 billion.
Two other indices also saw moderate gains. The DS30 Index, which consists of blue-chip companies, gained 2.17 points to 2,117 while the DSES index, which represents Shariah-based companies, rose 10.64 points to 1,362.
Majority of the stocks saw price surge, as out of 397 issues traded, 182 closed higher, 175 ended lower and 40 remained unchanged on the DSE trading floor.
The engineering sector dominated the weekly turnover chart, accounting for more than 16 per cent of the week's total trade, followed by pharmaceuticals (13 per cent) and general insurance (12 per cent).
Small-cap BD Thai Aluminium became the most-traded stock with shares worth Tk 2.07 billion changing hands. It was followed by Orion Infusion, Fu-Wang Food, Khulna Printing and Packaging and Evince Textiles.
Khulna Printing was the week's top gainer, soaring 60.3 per cent, while Standard Ceramic was the worst loser, shedding 19.75 per cent.
The Chittagong Stock Exchange (CSE) also ended higher with its All Share Price Index (CASPI) rising 74 points to settle at 17,626 and the Selective Categories Index (CSCX) gaining 45 points to close at 10,555.
The port city bourse traded 37.63 million shares and mutual fund units with a turnover volume of Tk 783 million.
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