Dhaka, Bangladesh (BBN)- Bangladesh’s stocks extended the bullish spell for four week straight with key index of the major bourse crossing 5,000-mark for the first time since inception in January 2103, powered by investors’ buying spree.
Market insiders attributed the current market trend to investors’ growing confidence which encouraged them to inject fresh funds in stocks.
Week-on-week, the prime index of the Dhaka Stock Exchange (DSE) — DSEX gained a staggering 160.73 points or 3.30 percent to close at 5,026.93 points. It is the highest level of DSEX since its inception on January 28, 2013.
The two other indices also closed higher. The DSE30 index went up by 50.32 points or 2.65 percent to close at 1,949.64 points. The DSE Shariah Index gained 34.36 points or 2.99 percent to close at 1,181.68 points.
The port city bourse the Chittagong Stock Exchange (CSE) also saw steep gain last week with its Selective Categories Index – CSCX – soared 358.49 points or 3.94 percent to close at 9,439.05 points.
Total turnover on DSE stood at BDT 50.26 billion which was BDT 45.98 billion in a week before. Last week’s total turnover was the highest weekly turnover in 2014.
The daily turnover for the week averaged BDT 10.05 billion, registering an increase of 9.30 percent over the previous week’s average BDT 9.19 billion.
LankaBangla Securities said: “Current market scenario indicates investors’ growing confidence about the long term bullishness of the market with burgeoning liquidity and economic activities”.
Fixed Deposit Receipt (FDR) rate has been in decreasing trend for some time now, which might be alluring investors to invest in equity, said the stock broker.
Factors, including stable economic outlook, relatively calm in the political field and vast population have attracted some global top fund managers, the stock broker added.
IDLC Investments said: “Last week of the month featured with strong turnover and persistent enthusiasm from the investors”.
All the five sessions closed in green while investors continued to inject fresh funds and return chasing behavior sustained,” said the investments bank.
DSEX crossed the ‘physiological’ threshold of 5,000-mark, giving confidence boost to the retail participants, said the merchant bank.
Gainers outpaced losers as out of 310 issues traded, 194 advanced, 106 declined 10 remained unchanged on DSE floor during the week.
Five listed companies – United Airways, Eastern Housing, Bangladesh Building Systems, Bangas and Fareast Islami Life Insurance declared corporate declaration during the week.
The market capitalisation of the DSE went up by 2.83 percent as it was BDT 3,272.19 billion on the opening day of the week and it stood at BDT 3,364.93 billion on closing day of the week.
MJL Bangladesh dominated the week’s top turnover chart for the third week straight with shares worth BDT 2.33 billion changing hands followed by Beximco, BSRM Steels, RSRM Steels and Beximco Pharma.
RAK Ceramics was the week’s top gainer, posting a rise of 37.98 percent while Grameen Mutual One was the week’s worst loser, slumping by 11.48 percent.
BBN/SI/AD-27Sept14-12:01am (BST)
