Dhaka, Bangladesh (BBN)– Bangladesh’s stocks return to green last week that ended on Thursday, breaking a three-week losing spell, as optimistic investors took position on lucrative stocks.
The week witnessed four trading sessions instead of usual five as Sunday was public holiday due to May Day. Among them, market closed higher two sessions, while two saw mild correction.
The benchmark index of the Dhaka Stock Exchange (DSE), went up by 111.10 points or 2.65 percent to finish the week at 4,306.80 points, after remaining down in the past three consecutive weeks.
The DS30 index, comprising blue chips, soared 52.94 points or 3.28 percent to finish at 1,665.29 points.
The DSE Shariah Index rose 31.99 points or 3.12 percent to close at 1,057.13 points.
The port city bourse Chittagong Stock Exchange (CSE) also ended higher with its Selective Categories Index, CSCX, advancing 207.52 points or 2.64 percent to settle at 8,057.71 points.
The total turnover for the week stood at BDT 17.45 billion, which was BDT 17.81 billion in the week before despite four trading sessions instead of previous week’s five.
The daily turnover averaged BDT 4.36 billion, registering an increase of 22.53 percent over the previous week’s average of BDT 3.56 billion.
Analysts said stocks got the boost from the central bank’s declaration on policy support to bring down banks’ over-exposure in capital market, while lucratively priced fundamental stocks attracted the bargain hunters to take position.
IDLC Investments, a merchant bank, said, “Breaking out the bearish spell of last three weeks, market turned around last week”.
The merchant bank noted that earlier correction in market lured the bargain hunters to come forward as some fundamental issues appeared to be lucratively priced.
“Policy support from the central bank in regards to capital market exposure of banks came as a boon to the market, said the merchant bank,” said the merchant bank.
The gainers took a strong lead over the losers as out of 326 issues traded, 201 closed higher, 100 lower and 25 remained unchanged on the DSE trading floor during the week.
Bangladesh Steel Re-rolling Mills dominated the week’s turnover chart on the DSE with shares worth BDT 875 million changing hands, followed by United Power, MJL BD, Linde and Square Pharmaceuticals.
United Airways was the week’s best performer, posting a gain of 26.67 percent, while BD welding Electrodes was the week’s worst loser, slumping by 25.42 percent following its no dividend recommendation.