Stocks extended the winning streak for the three consecutive weeks that ended Thursday, the first post-budget week, as some investors continued their buying appetite on sector specific issues.
Brokers said the market maintained the upward trend in the week after budget declaration for the fiscal year (FY) 2017-18, amid optimism.
"Although the government did not propose any incentives for stock investors in the budget, the recent initiative to cut yield rates of savings instruments, prompted investors to take fresh position," said an analyst at a leading brokerage firm.
He noted that news like surging flow of inward remittance in May coupled with further declining interest rate on deposits, encouraged investors to take fresh position anticipating short-term rally.
Finance Minister AMA Muhith proposed to keep the existing tax rate unchanged for publicly traded companies at 25 per cent and for non-publicly traded companies at 35 per cent, other than bank, financial institutions, telecommunication and tobacco companies.
The optimistic investors showed their buying interest on large-cap issues, especially from food & allied, fuel & power, non-bank financial institutions sectors which helped the indices to end the week in green.
The week witnessed five trading sessions as usual. Of them, first three sessions closed higher while last two faced mild correction.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 37.04 points or 0.68 per cent to settle at 5,476.
EBL Securities, a stockbroker, said, "Although there was not much proposed for capital market in the new budget, initiative to cut yield rates on savings instruments and increased excise duty on bank accounts stimulated investors to take fresh position on stocks".
The two other indices also edged higher. The DS30 index, comprising blue chips, also advanced 14.28 points or 0.71 per cent to close at 2037. The DSE Shariah Index rose 9.39 points or 0.75 per cent to close at 1,268.
The port city bourse, Chittagong Stock Exchange (CSE), also ended higher with its Selective Categories Index, CSCX, advancing 72.68 points or 0.71 per cent to settle at 10,280.
International Leasing Securities, said, "The extended its winning spell for the three consecutive weeks as some investors showed their buying appetite amid optimism after unveiling the national budget".
The stockbroker noted that some investors were analyzing the possible impact of the proposed budget on the stock market of the country while some others were busy on reshuffling their portfolio.
"Though the budget did not get any special attention regarding capital market and some demands of the market leaders, the optimistic investors took position on textile, food & allied, financial institutions, fuel & power and pharma sector stocks, taking the market into green zone," said the stockbroker.
The total turnover for the week stood at Tk 27.80 billion, registering an increase of 35 per cent over the previous week's Tk 20.569 billion.
The daily turnover averaged at Tk 5.56 billion, which was 35 per cent lower than the previous week's average of Tk 4.11 billion.
Fuel & power sector emerged as the week's turnover leader, contributing 19 per cent of the week's total turnover value, followed by textile 18 per cent and pharmaceuticals 14 per cent.
The gainers took a strong lead over the losers as out of 332 issues traded, 198 closed higher, 112 closed lower and 22 remained unchanged on the DSE trading floor.
The total market cap of the DSE advanced 0.46 per cent last week as it was Tk 3,702 billion on the opening day of the week, while stood at Tk 3,719 billion on closing day of the week.
MJL Bangladesh topped the week's turnover chart with about 9.90 million shares of Tk 1.21 billion changing hands, closely followed by LankaBangla Finance with Tk 1.05 billion, Beximco Pharma Tk 998 million, Shahjibazar Power Tk 983 million and United Power Tk 909 million.
Central Pharma was the week's highest gainer, posting a 12.55 per cent rise, while National Bank was the worst loser, shedding by 17.42 per cent following its price adjustment after record date.
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