Dhaka, Bangladesh (BBN)- Bangladesh’s stocks closed higher for the third consecutive week on Thursday with turnover value improving despite political unrest, as investors poured fresh fund into the market amid optimism.
The Dhaka Stock Exchange (DSE) General Index, DGEN, crossed 4,300 points mark for the first time after last 12 weeks, ending the week at 4,318.19 points, registering a rise of 87.50 points or 0.2.07 percent over the previous week.
Chittagong Stock Exchange (CSE) also closed higher with the CSE Selective Category Index went up by 132.58 points or 1.61 percent to close at 8,340.46.
The market witnessed five trading sessions as usual. Among those, four sessions gained 89.22 points, while one session lost 1.72 points.
Newly introduced DSE-Broad Index (DSEX) went up by 63.28 points or 1.53 percent to close at 4,199.59 points, while DSE-30 Index (DS30) gained 35.98 points or 2.42 per cent to close at 1,524.54.
Turnover is improving gradually amid increased participation of investors and improved liquidity situation. DSE daily turnover value crossed BDT 3.0 billion mark last week.
The total turnover value of the week improved further to stand at BDT 15.31 billion, up by 11.81 per cent from previous week’s BDT 13.70 billion.
“Despite the political unrest, the market upheld the upward trend consecutively for the third week, as most of the investors were in buying temper throughout the week,” commented LankaBangla Securities in its weekly market analysis.
Moreover, increasing turnover and absorption of new listing (Summit Purbanchol Power Company) without any major adjustments in other sectors are indicating that fresh fund is flowing to the market, the stock broker mentioned.
“Overall investment scenario improved and many investors also went for taking fresh positions, pushing turnover up by 11.41 per cent over last week,” stated IDLC Investments in its weekly analysis.
Monetary Policy Statement (MPS) and recently formed Stock Market Coordination Committee’s steps which dominated the investors’ psychology further improved the turnover, observed a merchant banker.
Market gained as investors seemed to recover their confidence with increased turnover, following the introduction of the indices, he added.
All the major sectors posted gains. Fuel and power sector gained 6.50 percent, turning the sector into the highest market mover. It was followed by NBFIs 5.40 percent and pharmaceuticals 2.54 percent. Telecommunications and banks advanced 0.97 percent and 0.05 percent respectively.
Most of the sectors saw their volume up significantly as the investors made fresh investments. a stock broker said.
Of the total 281 issues traded during the week, 156 advanced, 108 declined and 17 remained unchanged.
The market capitalization of the DSE increased slightly by 1.67 percent, as it was BDT 2,403.67 billion on the opening day of the week and at the end of the week it stood at BDT 2,443.78 billion.
Newly listed Summit Purbanchol Power Company dominated the week’s top turnover chart with shares worth Tk 1.24 billion changed hands.
The other turnovers leaders were United Airways, Unique Hotel and Resorts, Grameenphone, Sunlife Insurance, Beximco Limited, RN Spinning, Saiham Cotton Mills, Generation Next Fashion and National Bank.
Prime Finance First Mutual Fund was the week’s highest gainer posting a rise of 12.89 per cent. It was followed by Prime Finance, Eighth ICB, IDLC Finance, United Leasing, Bay Leasing, Jamuna Oil, Titas Gas, Islamic Finance and Uttara Finance.
BBN/SSR/AD-09Feb13-8:44 am (BST)