Dhaka, Bangladesh (BBN)–Bangladesh’s stocks turned around last week, after remaining sluggish in the last two weeks, as investors went on a buying spree following the securities regulator’s latest move.
Continuous slide of stock prices promoted the Bangladesh Securities & Exchange Commission (BSEC) to call an urgent meeting with the stakeholders on Monday evening.
In the meeting, the brokerages and merchant banks called upon to give support to the falling market.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 75.04 points or 1.85 percent to close the week at 4,122.32 points.
The two other indices also ended in positive zone.
The DS30 index, comprising blue chips gained 13.01 points or 0.84 percent to close at 1,558.20 points.
The DSE Shariah Index advanced 17.87 points or 1.80 percent to close at 1,010.41 points.
The port city bourse Chittagong Stock Exchange (CSE) also returned to green territory, with its Selective Categories Index – CSCX – gained 168.35 points or 2.23 percent to close the week at 7,717.33 points.
Turnover also improved last week. The total turnover for the week stood at BDT 14.42 billion against BDT 13.63 billion the week before.
The daily turnover for the week averaged BDT 3.60 billion, registering an increase of 5.76 percent over the previous week’s averaged BDT 3.40 billion.
“The severe correction pushed several stocks to attractive valuation level, which allured investors from the sideline, during the rest of the week,” said IDLC Investments, in its weekly market analysis.
Besides, the securities regulator turned active in face of the rapid correction, which provided some comfort to the investors, said the merchant bank.
“The investors preferred to take long-term position as there created lucrative buying opportunity in several fundamentally strong issues,” said International Leasing Securities, in an analysis.
LankaBangla Securities said, “The week ended in green allowing the investors to heave a sigh of relief after prior two consecutive weeks ending in red”.
The losers took a strong lead over the gainers as out of 319 issues traded, 239 declined, 68 advanced and 12 remained unchanged on the DSE trading floor.
United Power Generation & Distribution Company dominated the week’s top turnover chart with shares worth BDT 1.46 billion changing hands during the week followed by ACI Formulations, ACI, Shahjibazar Power, IFAD Autos and MJL BD.
In Tech Online was the week’s top gainer, posting a rise of 29.17 percent while Pioneer Insurance was the week’s worst loser, plunging by 5.0 percent.