The stock market rebounded last week, after remaining sluggish in the last two consecutive weeks, as investors went on a buying spree following the securities regulator's latest move.
Bangladesh Securities & Exchange Commission (BSEC) Monday called upon the brokerage houses and merchant banks to give support to the falling market. Since then the market was on a steady gaining streak and DSEX recovered about 162 points in the last three sessions of the week.
"Investors were encouraged by the fact that institutional investors became net buyers after securities regulator asked them (institutional investors) to give support the downward market," said an analyst.
The week featured four trading sessions instead of five as the market was closed Sunday due to Buddha Purniama. Of those, DSEX slumped 87.54 points in the first session and dipped below the major 'psychological' threshold of 4,000-mark. However, last three sessions recovered 162 points.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 75.04 points or 1.85 per cent to close the week at 4,122.32 points.
The two other indices also ended in positive zone. The DS30 index, comprising blue chips gained 13.01 points or 0.84 per cent to close at 1,558.20 points. The DSE Shariah Index advanced 17.87 points or 1.80 per cent to close at 1,010.41 points.
The port city bourse Chittagong Stock Exchange (CSE) also returned to green territory, with its Selective Categories Index - CSCX - gained 168.35 points or 2.23 per cent to close the week at 7,717.33 points.
Turnover, the most important indicator of the market, also improved last week. The total turnover for the week stood at Tk 14.42 billion against Tk 13.63 billion the week before.
The daily turnover for the week averaged Tk 3.60 billion, registering an increase of 5.76 per cent over the previous week's average of Tk 3.40 billion.
The investors' activity was mostly focused on power, pharma and engineering - the sectors that accounted for 25 per cent, 20 per cent and 15 per cent respectively of the week's total turnover.
"The severe correction pushed several stocks to attractive valuation level, which allured investors from the sideline, during the rest of the week," said IDLC Investments, in its weekly market analysis.
Besides, the securities regulator turned active in face of the rapid correction, which provided some comfort to the investors, said the merchant bank.
After the first session, buy mode prevailed and strengthened in the market, while corporate and earnings disclosure flooded the market, it said.
"The declarations fueled buy pressure as significant number of stocks posted profit growth for the political turmoil ridden Jan-Mar 2015 period, despite investors' concern," said the merchant bank.
International Leasing Securities said, "The investors preferred to take long-term position as there created lucrative buying opportunity in several fundamentally strong issues".
LankaBangla Securities said, "The week ended in green allowing the investors to heave a sigh of relief after prior two consecutive weeks ending in red".
All the large-cap sectors gained last week except food and allied, which lost 2.25 per cent.
NBFIs registered the highest gain of 5.41 per cent over the week. Banks gained 2.32 per cent. Pharmaceuticals went up by 2.20 per cent. Cement gained 2.09 per cent over the week. Power and telecommunication closed 1.70 per cent and 0.86 per cent higher.
The losers took a strong lead over the gainers as out of 319 issues traded, 239 declined, 68 advanced and 12 remained unchanged on the DSE trading floor.
The Board of Directors of 25 listed companies recommended dividend last week while one company failed to recommend any dividend.
The market capitalisation of the DSE went up by 1.35 per cent as it was Tk 2,973.46 billion on the opening day of the week and it stood at Tk 3,013.62 billion on closing day of the week.
United Power Generation & Distribution Company dominated the week's top turnover chart with shares worth Tk 1.46 billion changing hands during the week followed by ACI Formulations, ACI, Shahjibazar Power, IFAD Autos and MJL BD.
In Tech Online was the week's top gainer, posting a rise of 29.17 per cent while Pioneer Insurance was the week's worst loser, plunging by 5.0 per cent.
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