The market bounced back in the gaining streak last week, snapping a two-week losing streak, as some investors put fresh stakes in lucrative stocks in later part of the week due to regulatory stances.
Market analysts said the stocks rebounded with renewed investors' optimism as aggressive sell-off was halted following the securities regulator's crackdown and encouragement to increase institutional funds flow in the market.
The week featured five trading days as usual. Of them, first two sessions witnessed massive sell-off while the last three ended higher.
Week-on-week, DSEX, the prime index of Dhaka Stock Exchange (DSE), went up by 77.39 points or 1.18 per cent to settle at 6,662, after losing 173 points in the past two consecutive weeks.
"The regulatory encouragement to increase institutional funds flow in the market along with crackdown on aggressive selling-off helped general investors get some confidence," said a merchant banker.
The general investors hope the participation of institutional investors may rise in the market further as some have already started to make fresh investment into fundamentally sound stocks, he said.
The Bangladesh Securities and Exchange Commission urged the state owned four banks, brokers, dealers, merchant bankers and asset management companies to take initiatives to make fresh investments through their own portfolios.
The securities regulator sent letters to the managing directors of the four state-run banks Tuesday requesting to take necessary steps to make a fresh investment through their portfolio.
The securities regulator also raised the lower limit circuit breakers to 5.0 per cent, from 2.0 per cent, giving investors a breather to engage in fresh investment.
According to EBL Securities, participation from institutional investors at the later part of the week changed the course of the falling market and pushed the index upward.
The securities regulator has taken several steps which acted as a catalyst to calm the nerve of the investors and encouraged their participation in the market, said the stockbroker.
"The institutional participation on the bourse triggered the recovery, while retail investors followed the upward momentum," the stockbroker said.
"Aggressive sale pressures hit the broad index early in the week but regulatory steps to increase the institutional fund flows supported the market strongly later in the week," said International Leasing Securities.
The week's total turnover stood at Tk 27.44 billion on the prime bourse as against Tk 22.63 billion in the week before as previous week saw four trading days instead of five.
The daily turnover averaged out at Tk 5.48 billion, down 3.02 per cent from the previous week's average of Tk 5.65 billion.
Two other DSE indices also ended higher. The DS30 index, comprising blue chips, rose 37.62 points to finish at 2,478 and the DSE Shariah Index (DSES) gained 16.84 points to close at 1,464.
Market capitalisation of the DSE also rose by 1.25 per cent to Tk 5,356 billion on Thursday, from Tk 5,290 billion in the week before.
Major sectors posted gains with telecom generating the highest return of 2.80 per cent, followed by financial institutions with 2.60 per cent, banking 1.70 per cent, power 1.60 per cent, pharma 1.40 per cent and engineering 1.30 per cent.
Of the 386 issued traded, 204 advanced, 140 declined and 42 issues remained unchanged on the DSE trading floor.
Beximco was the most traded stock with shares worth Tk 2.16 billion changing hands, followed by JMI Hospital Requisite Manufacturing (Tk 1.76 billion), Bangladesh Spinning Corporation (Tk 889 million), Sonali Papers & Board Mills (Tk 873 million) and IPDC Finance (Tk 847 million).
JMI Hospital Requisite Manufacturing was the week's top gainer, posting a 44.94 per cent gain, while Premier Bank was the worst loser, shedding 14.11 per cent, following its price adjustment after record date during the week.
The Chittagong Stock Exchange (CSE) also rebounded, with the CSE All Share Price Index (CASPI) rising 227 points to settle at 19,593 and its Selective Categories Index (CSCX) gaining 137 points to close the week at 11,756.
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