Dhaka, Bangladesh (BBN)– Bangladesh’s stocks soared last week that ended on Thursday, the first week after the national election, as investors reacted positively to the election outcome.
Analysts said the investors took a fresh position expecting better days ahead riding on political stability and more sound business activities as the election held almost peacefully.
“The peaceful election has boosted investor confidence. The market is starting to reflect that,” said a broker.
The investors found a positive stance after the landslide victory of the Awami League-led grand alliance in the 11th parliamentary election, he said.
The newly elected lawmakers took oath on Thursday while the new cabinet will take oath on January 07 (Monday).
The week saw three trading sessions instead of five as the market closed on Sunday and Monday due to national election and bank holiday.
Continuing the past two weeks’ gaining streak, the market was bullish all three trading sessions.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 204.83 points or 3.80 percent to settle the week at 5,590 points.
The two other indices also ended higher. The DS30 index, comprising blue chips, advanced 61.21 points to finish at 1,942 and the DSE Shariah Index rose 38.58 points to close at 1,271.
“This bullish trend was triggered by injecting fresh fund at the beginning of the year, growing confidence among the investors and positive impact of national election,” commented City Bank Capital Resources, in its weekly market analysis.
The total turnover also rose to BDT 21.51 billion last week, up from BDT 16.37 billion in the week before despite last week saw three trading days.
The daily turnover averaged BDT 7.17 billion, soaring 75 percent over the previous week’s average of BDT 4.09 billion.
The market capitalisation of the DSE also rose 2.72 percent to BDT 3,978 billion, from BDT 3,873 billion in the week before.
The power sector posted the highest gain of 6.18 percent, followed by financial institutions with 5.84 percent, engineering 5.80 percent, banking 4.25 percent, pharmaceuticals 1.30 percent and food 1.25 percent.
Of the 347 issues traded, 312 closed higher, 29 ended lower and 06 issues remained unchanged on the DSE trading floor.
BBS Cables topped the week’s turnover chart with 8.53 million shares worth BDT 888 million changing hands.
United Insurance was the week’s best performer, posting a gain of 23.51 percent while Pragati Life Insurance was the biggest loser, shedding 5.32 percent.
The port city bourse, Chittagong Stock Exchange (CSE), also maintained the upbeat note, with its CSE All Share Price Index — CASPI –soaring 717 points or 4.35 percent to settle at 17,166 and the Selective Categories Index — CSCX – rising 420 points or 4.22 percent to finish at 10,367.