Dhaka, Bangladesh (BBN)- Bangladesh’s stocks registered a sharp rise last week and key index of the major bourse hitting highest level since its inception as the market was on a steady gaining streak for a four week.
Last week featured all five trading sessions as usual. Among them, the market witnessed sharp gain four trading sessions while one saw marginal correction.
Week-on-week, the prime index of the Dhaka Stock Exchange (DSEX) gained a staggering 190.27 points or 4.07 percent to close the week at 4,866.19 points which is the highest level of DSEX since its inception on January 28, 2013.
The other two indices – DSE 30 and DSE Shariah Index also climbed at highest point level of 1,899.31 points and 1,147.32 points from the inception, gaining 112.74 points and 46.00 points respectively during the week.
The port city bourse the Chittagong Stock Exchange (CSE) also saw steep gain last week with its Selective Categories Index - CSCX – soared 322.71 points or 3.68 percent to close at 9,080.56 points.
The week saw heavy trading on all five sessions last week. The week’s total turnover amounted to BDT 45.98 billion which was BDT 28.66 billion in the week before. So, far it was the highest single-week turnover recorded during the year 2014.
The daily turnover for the week averaged BDT 9.19 billion, registering an increase of 60.40 percent over the previous week’s average BDT 5.73 billion.
The gradual increase in investors’ confidence helped the market to set the fresh high both turnover and index, said a market analyst.
“Sustaining positive trend across the market continued amid optimism among the investors,” commented IDLC Investments, a merchant bank, in an analysis.
Investors from all the segments started returning to market, creating an upside potential again and fresh fund injection and positioning on selective few stocks were notable, the merchant bank said.
International Leasing securities said: “The investors were seemed optimistic about some particular sectors like, telecom, cement and engineering. Banking sector also showed some positive movement last week.
“This resistance breakout is sign of bullish market sentiment. Now investors would want to observe whether market stays above this level for few days so that the feel confident that market will sustain above 4,850-level,” said LankaBangla Securities.
Losers outpaced gainers as out of 310 issues traded, 150 declined, 140 advanced and 20 remained unchanged on DSE floor during the week.
Two listed companies – Matin Spinning Mills and Central Pharmaceuticals -- made corporate declaration last week. Matin Spinning declared 25 per cent and Central Pharmaceuticals recommended 5 per cent cash and 15 per cent stock dividend.
MJL Bangladesh dominated the week’s top turnover chart for the second week straight with shares worth BDT 2.70 billion changing hands followed by BSRM Steels, Beximco Pharma, Beximco and GP.
Summit Alliance Port Ltd was the week’s top gainer, posting a rise of 25.67 percent while FAR Chemical was the week’s worst loser, slumping by 26.52 percent.
BBN/SSR/AD-19Sept14-9:00pm (BST)