Dhaka, Bangladesh (BBN) – Bangladesh’s stocks extended their winning streak for the four consecutive weeks that ended on Thursday as investors continued on buying spree amid optimism.
Analysts said the market maintained the upward trend as the optimistic investors, including some global fund managers, were active on both sides of the trading fence almost throughout the week.
“The bullish spell sustained with active participation of enthusiastic investors, who took fresh positions in few fundamental stocks,” said an analyst at a leading brokerage firm”.
The week witnessed five trading sessions as usual. Of them, first session saw marginal correction, while last four closed higher.
Weak-on-week, the benchmark index of the Dhaka Stock Exchange (DSE) went up by 28.54 points or 0.61 percent to close at one year high level at 4,723.73 points. It was the highest level of DSEX since October 13, 2015.
The two other indices also ended higher. The DS30 index, comprising blue chips, advanced 5.89 points or 0.33 percent to settle at 1,784.59 points.
The DSE Shariah Index rose 5.52 points or 0.49 percent to close at 1,131.39 points.
The port city bourse, Chittagong Stock Exchange (CSE) also finished marginally higher with its Selective Categories Index, CSCX, advancing 49.24 points or 0.56 percent to close at 8,835.09 points.
The total turnover for the week stood at BDT 27.06 billion, which was 19.46 percent lower than the previous week’s BDT 33.60 billion as the week saw five trading sessions instead of previous week’six.
The daily turnover averaged BDT 5.41 billion, registering a decline of 3.35 percent over the previous week’s average of BDT 5.60 billion.
IDLC Investments, a merchant bank, said, “Over the week, market was very vibrant and overall bullishness encouraged further activities”.
The engineering sector continued to lead the turnover chart, grabbing 16.4 percent driven by Singer Bangladesh, and BSRM Steels, followed fuel and power, capturing 14 percent of total trade value, which was mostly contributed by NJL Bangladesh and Jamuna Oil.
LankaBangla Securities, stockbroker, said, “Banking and consumer stocks tried to support the market, while profit booking on non-bank financial institutions stocks capped the week’s gain.
Among the major weekly news, IMF reported that Bangladesh’s economy will grow by 6.9 percent this fiscal year despite the subdued global growth. On Monday, the World Bank projected that Bangladesh’s economy would grow at 6.8 percent this year.
International Leasing Securities, a stockbroker, said, “Investor’s expectation regarding the market remained positive because of the upward revision in GDP forecast by ADB, the Government’s eagerness to raise funds through the capital market for mega projects in the power and energy sector and including the upcoming corporate declarations from listed corporations”.
The stockbroker noted that such scenarios demonstrated the investors’ cheerfulness about future direction of the capital market.
The the large-cap sectors showed positive performances except non-bank financial institutions which fell 1.23 per cent. Banks posted 0.94 percent gain.
Food & allied saw 1.31 percent gain, followed by fuel and power 1.03 percent, engineering 0.97 percent, telecommunication 0.73 percent and pharmaceuticals 0.39 percent.
The gainers took a strong lead over the losers as out of 326 issues traded, 179 closed higher, 120 lower and 27 remained unchanged on the DSE trading floor last the week.
MJL Bangladesh dominated the week’s turnover chart with shares worth BDT 957 million changing hands, followed by Singer Bangladesh, Bangladesh Shipping Corporation, BSRM Steels and Square Pharmaceuticals.
Intech Online was the week’s best performer, posting a 23.02 percent rise, while recently listed Yeakin Polymer was the worst loser, slumping by 12.95 percent.