Dhaka, Bangladesh (BBN) – Bangladesh’s stocks witnessed yet another bullish week that ended on Thursday with significant improvement in turnover as investors remained on buying spree amid optimism.
The government’s decision of interest rate cut on savings instruments, falling banks’ deposit interest rate coupled with budgetary expectations spurred stocks prices, analysts say.
Bangladesh’s government is set to announce its national budget for the fiscal year 2015-2016 on June 4, 2015.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), crossed the 4,400-mark and ended at 4,483.28 points, gaining 168.39 points or 3.90 percent.
The two other indices also closed higher. The DS30 index, comprising blue chips, gained 59.72 points or 3.68 percent to close at 1,683.43 points. The DSE Shariah Index rose 36.45 points or 3.48 percent to close at 1,082.93 points.
The port city bourse Chittagong Stock Exchange (CSE) also ended higher, with its Selective Categories Index - CSCX – gained 325 points or 4.0 percent to close the week at 8,457.92 points.
Turnover, the most important indicator of the market, also shot up significantly last week. The total turnover for the week stood at BDT 38.36 billion against BDT 29.80 billion the week before.
The daily turnover for the week averaged BDT 7.67 billion, registering an increase of 29 percent over the previous week’s averaged BDT 5.95 billion.
“As political worries sedated for the time being and rates on savings certificate cut as well as expectation for budgetary stimulus came on the cards, market was offered with a place to rebound,” said IDLC Investments, a merchant bank, in its weekly analysis.
LankaBangla Securities, a stock broker, said, “Investors’ sentiment got somewhat positive amidst calmness in political front and upcoming budget expectations”.
“Investors’ confidence soared on the continued gaining streak coupled with optimistic expectation ahead of the national budget to be announced first week in the next month,” said International Leasing Securities, a stock broker, in its weekly analysis.
The gainers took a strong lead over the losers as out of 323 issues traded, 237 advanced, 70 declined and 16 remained unchanged on the DSE trading floor.
KPCL was the week’s top turnover leader with shares worth BDT 2.08 billion changing hands during the week followed by United Power, BSCCL, RAK Ceramics and Saif Powertec.
Shuwrid Industries was the week’s best performer, posting a rise of 33.5 percent while Wata Chemicals was the week’s worst loser, plunging by 19.15 percent.