The last week of the outgoing fiscal year (FY) year ended higher, breaking three weeks losing spell, as optimistic investors took position on large-cap stocks, riding on post-Eid optimism.
Analysts said the market witnessed roll-back from losses as pre-Eid sale pressure petered out, while seasonal investment for the purpose of receiving tax benefit helped spur the market sentiment.
"The market observed rising activities, coupled with sector and issue specific movements, as expectation of post-Eid rally prompted investors to take position on stocks," said an analyst at a leading brokerage firm.
The week witnessed five trading sessions as usual. The week started with a flat beginning. However, significant buy pressure emerged in the following four days, prompting the market to rally.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), crossed the 'psychological' threshold of 4500-mark and finished the week at 4,507.58, surging 126.12 points or 2.88 per cent.
The two other indices also ended higher. The DS30 index, comprising blue chips, soared 56.44 points or 3.29 per cent to settle at 1,770.82. The DSE Shariah Index advanced 31.93 points or 2.96 per cent to close at 1,110.84.
The port city bourse Chittagong Stock Exchange (CSE) also ended higher with its Selective Categories Index, CSCX, surging by 205 points or 2.50 per cent to settle at 8,396.64.
"Surpassing the usual pre-Eid sale, market rallied as investors injected fund in the market to make tax benefit seeking investments," said IDLC Investments, a merchant bank, in its weekly market analysis.
The merchant bank noted that the large-cap and mid-cap stocks appreciated in price with gaining 3.10 per cent and 2.70 per cent respectively, driving the overall market return.
"Investors' enthusiasm coupled with a few large block trades helped average daily turnover to reach Tk 3.94 billion last week," said the merchant bank.
The investors were enthusiastic as the total turnover for the week stood at Tk 19.70 billion, which was Tk 16.19 billion in the week before.
The daily turnover averaged Tk 3.94 billion, registering an increase of 22 per cent over the previous week's average of Tk 3.24 billion.
Overall activities remained confined on, pharmaceuticals, engineering and banks sectors, where they captured 24 per cent, 13 per cent and 11 per cent respectively of the week's total turnover.
LankaBangla Securities, a stockbroker, said, the prime index made significant move last week amid increased participation as the market witnessed tax benefit seeking investments.
The stockbroker noted that the rally was driven by upsurge of the market cap of banks that increased by 3.98 per cent.
Stocks-wise movement was strong, as some issues attracted considerable turnover and offered substantial gain. Large-cap issues like Lafarge Surma Cement, ICB and IDLC Finance surged 9.40 per cent, 8.60 per cent and 6.70 per cent respectively, said the stockbroker.
International Leasing Securities, a stockbroker, said, "Stocks broke three-week losing streak riding on expectation of post-Eid rally".
The stockbroker noted that the government's decision to reset the individual investment rebate also spurred the market sentiment, while some injected fresh fund in stocks to earn tax benefit in the closing of financial year.
"Few positive news like lowering interest rate for ICB's refinancing fund, reducing tax at source on export, increasing the ceiling for investment rebate to 25 per cent from the proposed 0.20 per cent created buoyancy in the market" City Bank Capital, a merchant bank, said.
Gainers took a strong lead over the losers as out of 328 issues traded, 240 closed higher, 61 closed lower and 27 remained unchanged on the DSE trading floor during the week.
Only one listed company -Fareast Islami Life Insurance-- recommended 39 per cent cash dividend last week for the year ended on December 31, 2015. In 2014, the company also disbursed 35 per cent cash and 10 per cent stock dividend.
The market capitalisation of the DSE also rose 2.24 per cent last week as it was Tk 3,115.94 billion on the opening day of the week and it rose to Tk 3,185.75 billion on closing day of the week.
Square Pharmaceuticals dominated the week's turnover chart with 2.72 million shares worth Tk 715 million changing hands, followed by ACME Laboratories Tk 645 million, Lafarge Surma Cement Tk 625 million, Islami Bank Tk 462 million and Olympic Accessories Tk 423 million.
SEML Lecture Equity Management Fund was the week's best performer, posting a gain of 30.39 per cent, while Hamid Fabric was the worst loser, plunging by 8.76 per cent.
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