Retailers trade at Dhaka Stock Exchange office. BBN file photo

Dhaka, Bangladesh (BBN) – Bangladesh’s stocks extended the gaining streak for the fourth straight week as optimistic investors continued their buying spree on sector-wise stocks.

Analysts said the market extended the winning streak as investors took position on from fuel & power, pharmaceuticals and food & allied sectors helped the major bourse to close at record high.

Four out of five trading days during the week closed green. The market participation also increased last week.
DSEX, the key index of the Dhaka Stock Exchange (DSE) went up by 40.42 points or 0.64 percent to settle at historical high at 6,322. It was the highest level of DSEX since its inception on January 27, 2013.

The DSE Shariah Index (DSES) also followed the suit to close at historical high at 1,393, after gaining 18 points or 1.31 percent. It was also the highest level of DSES since its introduction on January 20, 2014.

However, the DSE 30 Index comprising blue chips fell 2.29 points or 0.10 percent to finish at 2,277.

The port city bourse Chittagong Stock Exchange (CSE) also closed higher with CSE All Share Price Index (CAPSI) – advancing 124 points or 0.63 percent to finish at 19,569.

Bullish sentiment also reflected on the turnover activities as total turnover for the week amounted to BDT 49.74 billion on the DSE, which was BDT 46.85 billion in the week before.

The daily turnover averaged BDT 9.95 billion, which was 6.16 percent higher than the previous week’s average of BDT 9.36 billion.

According to International Leasing Securities, stocks witnessed another bullish week as investors showed their buying spree on large-cap stocks, especially from engineering, textile, fuel & power and pharmaceuticals sectors amid optimism.

The stockbroker noted that investors’ increased concentration on power, food and NBFI sectors helped the market to close higher. However, some other investors opted for profit booking on banking and telecom sector issues as these sectors witnessed price surge in the last couple of weeks, the stockbroker said.

“Investors were negative toward bank sector as news of increasing non-performing loan in this sector depressed them,” said the stockbroker.

Non-performing loans (NPLs) in Bangladesh’s banking sector surged over BDT 800-billion mark for the first time at the end of September last.

Among the major sectors, fuel and power posted the highest gain of 1.32 percent, followed by pharmaceuticals with 0.90 percent and food & allied 0.88 per cent.

Telecommunication and banking sectors lost 1.50 percent and 0.80 percent respectively after witnessing sharp gain in the past two weeks.

Out of 337 issues traded, 188 closed higher, 135 closed lower and 14 issues remaining unchanged on the DSE trading floor during the week.

LankaBangla Finance topped the week’s turnover chart with 64.37 million shares of BDT 4.37 billion changing hands, closely followed by AB Bank, Dhaka Bank, Shahjalal Islami Bank and Square Pharmaceuticals.

Eastern Cables was the week’s best performer for the two consecutive weeks, posting a gain of 27.06 percent while Gemini Sea Food was the week’s worst loser, slumping by 51.20 percent.