Dhaka, Bangladesh (BBN)– Bangladesh’s stocks closed higher for the three consecutive weeks that ended on Thursday as some investors continued their buying binge on sector specific issues.
Analysts said the market maintained the upward trend, the first week after budget declaration for the fiscal year (FY) 2017-18, amid optimism although the government did not propose any incentives for stock investors in the budget.
“The Bangladesh’s government’s recent initiative to cut yield rates of savings instruments, coupled with news like surging flow of inward remittance in May coupled with further declining interest rate on deposits, prompted investors to take fresh position anticipating short-term rally,” said an analyst.
The week witnessed five trading sessions as usual. Of them, first three sessions closed higher while last two faced mild correction.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 37.04 points or 0.68 percent to settle at 5,476 points.
The two other indices also edged higher. The DS30 index, comprising blue chips, also advanced 14.28 points or 0.71 percent to close at 2037 points.
The DSE Shariah Index rose 9.39 points or 0.75 percent to close at 1,268 points.
The port city bourse, Chittagong Stock Exchange (CSE), also ended higher with its Selective Categories Index, CSCX, advancing 72.68 points or 0.71 per cent to settle at 10,280 points.
“Although there was not much proposed for capital market in the new budget, initiative to cut yield rates on savings instruments and increased excise duty on bank accounts stimulated investors to take fresh position on stocks,” commented EBL Securities, in its weekly analysis.
International Leasing Securities, said, “Some investors were analyzing the possible impact of the proposed budget on the stock market of the country while some others were busy on reshuffling their portfolio”.
The total turnover for the week stood at BDT 27.80 billion, registering an increase of 35 percent over the previous week’s BDT 20.569 billion.
The daily turnover averaged at BDT 5.56 billion, which was 35 percent lower than the previous week’s average of BDT 4.11 billion.
The gainers took a strong lead over the losers as out of 332 issues traded, 198 closed higher, 112 closed lower and 22 remained unchanged on the DSE trading floor.
MJL Bangladesh topped the week’s turnover chart with about 9.90 million shares of BDT 1.21 billion changing hands, closely followed by LankaBangla Finance, Beximco Pharma, Shahjibazar Power and United Power.
Central Pharma was the week’s highest gainer, posting a 12.55 percent rise, while National Bank was the worst loser, shedding by 17.42 percent following its price adjustment after record date.