Dhaka, Bangladesh (BBN) - Bangladesh’s stocks witnessed a steep rise in the outgoing week as investors rushed into the market riding on renewed optimism.
Market experts said the investors are expected that the return of good governance after a major political shift as the new government is likely to make some structural changes for economic stability.
The 17-member new interim government, led by Chief Advisor Dr Muhammad Yunus, took oath of office on Thursday evening.
Of the four trading days during the week, the key index lost 105 points in the first session but the trend reversed dramatically after the fall of Sheikh Hasina's government and it surged 696 points in the last three days of the week.
Substantial price rise of large-cap stocks helped the DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), settle 591 points or 11.08 per cent higher at 5,925, the highest in four and a half months. It had lost 173 points in the previous three straight weeks.
As large-cap stocks soared significantly, the market capitalisation of all listed companies on DSE surged by BDT 506 billion to BDT 7.04 trillion this week.
Square Pharma, BAT Bangladesh, Grameenphone, Brac Bank, Islami Bank and LafargeHolcim largely pushed the index higher. They made a significant impact on the index as these six stocks jointly accounted for a 200-point rise in the key index.
Square Pharma, the second largest listed firm in terms of market cap, was up 5.1 per cent on the bourse, adding 49 points to the key index.
BAT Bangladesh, which soared 5.4 per cent, accounted for a 42-point rise in the index alone, while Grameenphone contributed 32 points, as the largest-market-cap stock gained 10.4 per cent.
Accordingly, the blue-chip DS30 index, a group of 30 prominent companies, spiked more than 232 points to 2,133 while the DSES index, which represents Shariah-based companies, jumped 109 points to 1,275.
Investor participation in the market also jumped and the total weekly turnover amounted to BDT 33.4 billion, as against BDT 23.95 billion in the week before, although this week saw four trading days instead of regular five days.
The average daily turnover stood at BDT 8.35 billion, up 74 per cent compared to the previous week's turnover of BDT 4.78 billion.
Pharmaceuticals, banking and food sectors jointly grabbed around 48 per cent of the weekly turnover.
All the sectors posted significant gains with the heavyweight telecom sector saw the highest 26 per cent rise, as the sector leader Grameenphone surged 10.4 per cent alone. It was followed by non-bank financial institutions with 25.6 per cent, food 20 per cent, banking 16.5 per cent and power 14 per cent.
Gainers took a strong lead over the losers, as out of 397 issues traded, 339 closed higher, 47 ended lower and 11 remained unchanged on the Dhaka bourse.
BAT Bangladesh became the most traded stock with shares worth BDT 1.40 billion changing hands, closely followed by Square Pharma, City Bank, Unilever Consumer Care and Brac Bank.
Dacca Dyeing was the top gainer with a rise of 30.6 per cent, while Gemini Sea Food was the top loser, shedding 11.4 per cent.
On the other hand, the Chittagong Stock Exchange also ended sharply higher with its All Shares Price Index (CASPI) soaring 1,680 points to 16,799, while the Selective Categories Index (CSCX) jumped 1,019 points to 10,132.
BBN/SSR/AD