Snapping a three-week losing streak, the equity benchmark index rebounded sharply in the outgoing week as investor sentiment got a boost following the 12th national election that saw a landslide victory for the ruling Awami League.
As political uncertainties started easing following the national election, investors felt a sense of relief and grew optimistic about the market's prospects, anticipating that the economy will gradually overcome the prevailing challenges, according to analysts.
To make things better, Bangladesh Securities and Exchange Commission (BSEC) assured the stock market intermediaries this week that the floor price restriction will be gradually lifted after the national election.
A BSEC official said the initial plan involves lifting floor price restrictions on stocks that have a relatively lower impact on the index.
This week, the market remained closed on Sunday due to the national election. Of the four trading days, only the second session ended lower while three other sessions saw gains with high participation of investors.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), also surpassed the 6,300 mark after over three-and-a-half months. It closed the week 58 points or 0.9 per cent higher at 6,302.
The Shariah-based DSES index also rose 13.11 points to 1,376 while the blue-chip DS30 index jumped 24 points to 2,118.
According to EBL Securities, the market observed dominance of buyers as investor confidence slightly rebounded owing to positive expectations about the market momentum.
Moreover, investors showed buying interest in particularly large-cap stocks that remained shackled to the floor for a long time.
The participation of investors was also high, as the total turnover of the week stood at Tk 22 billion, up from Tk 16 billion in the week before.
Accordingly, the average daily turnover reached Tk 5.50 billion, which was almost 38 per cent higher than the previous week's average of Tk 3.99 billion.
Majority of the traded shares saw price appreciation, as out of 380 issues traded, 147 closed higher, 33 lower, and 200 remained unchanged on the DSE.
Most of the sectors ended in green, with the travel sector being the highest gainer (6.9 per cent). And the jute sector became the worst loser (-0.9 per cent).
The engineering sector dominated the weekly turnover chart, accounting for 14 per cent of the week's total turnover, followed by General Insurance (11 per cent) and pharmaceutical sectors (9 per cent).
Small-cap stocks kept their dominance on the turnover list with BD Thai Aluminium Ltd becoming the most-traded stock (Tk 906 million), followed by Sea Pearl Beach Resort & Spa Limited, Intraco Refuelling Station Limited, Rupali Bank PLC. and Meghna Life Insurance Co. Ltd.
Union Capital Ltd. was the week's top gainer, soaring 27.17 per cent, while Sinobangla Industries Limited was the worst loser, shedding 10.46 per cent.
The Chittagong Stock Exchange (CSE) also ended higher with its All Share Price Index (CASPI) gaining 157 points to settle at 18,665 and the Selective Categories Index (CSCX) gaining 8 points to close at 11,085.
The CSE traded 12.35 million shares and mutual fund units with a turnover volume of Tk 340 million.
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