Dhaka, Bangladesh (BBN)– Bangladesh’s stocks returned to higher last week that ended on Thursday, after a single-week break, as investors took position on sector specific large-cap shares amid post-Eid optimism.
Brokers said several factors like budget review expectation, June closing year-end earnings and dividend declarations coupled with post-Eid optimism prompted investors to inject fresh funds on stocks.
It was the last week before Eid vacation as trading and official activities will remained closed for five days (June 23 to June 27) in line with the government holidays.
The week witnessed five trading sessions as usual. Of them, first one faced mild correction while last four closed higher amid increased trading activities.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 130.75 points or 2.39 percent to settle at 5,599 points.
“Bullish mentality was prevalent in the market as the deadline for investment tax benefit neared and profit booking ahead of Eid was mostly finished before the week,” commented LankaBangla Securities, a stockbroker, in its weekly market analysis.
The two other indices also closed higher. The DS30 index, comprising blue chips, advanced 40.11 points or 1.97 percent to close at 2071 points.
The DSE Shariah Index gained 24 points or 1.90 percent to close at 1,286 points.
The port city bourse, Chittagong Stock Exchange (CSE), also finished higher with its Selective Categories Index, CSCX, advancing 241 points or 2.35 percent to settle at 10,490 points.
City Bank Capital Resources, a merchant bank, said, “Healthy gain triggered by investing on large-cap stocks expecting positive movement after Eid vacation”.
The merchant bank noted that there was also positive sentiment in investor mind on scrapping the implementation of New VAT law for next fiscal year.
The total turnover for the week stood at BDT 31 billion on DSE, registering an increase of 34 percent over the previous week’s BDT 23.17 billion.
The daily turnover averaged at BDT 6.21 billion, which was 34 percent higher than the previous week’s average of BDT 4.63 billion.
International Leasing Securities, a stockbroker, said, “Buoyancy of shares mostly from bank, engineering, telecom, ceramic and financial institution sectors contributed to the upsurge in indices”.
EBL Securities, a stockbroker, said, “The market gained momentum as investors’ regained confidence after the declaration that previous vat law is expected to remain effective for next two years”.
The gainers took a strong lead over the losers as out of 333 issues traded, 257 issues closed higher, 52 closed lower and 24 remained unchanged on the DSE trading floor.
Regent Textile topped the week’s turnover chart with about 42.91 million shares of BDT 1.30 billion changing hands, followed by LankaBangla Finance, Paramount Textile, Nurani Dyeing and IFAD Autos.
CVO Petrochemical Refinery was the week’s highest gainer, posting a 25.37 percent rise, while National Tea Company was the worst loser, losing 12.66 percent.