Dhaka, Bangladesh (BBN) - The country’s stocks took a flight after significant downtrend in the previous week as the buoyant investors went for buying binge in the last trading session on the news of regulatory measures and loan sanction by a multilateral donor agency.
The week started with the legacy of bearish trend of previous week and continued until Wednesday. Even the Dhaka Stock Exchange (DSE) benchmark general index dipped below 4,000 points on Wednesday.
However, 219 points' jump on Thursday, the last working day of the week, erased previous days' losses entirely. At the end of the week, market-tracking index, DGEN, closed at 4,210.58 points, rising 67.02 points or 1.62 percent on week-on-week.
"The market inched up after significant downtrend in the previous week on the news of changing margin loan provision and Asian Development Bank's (ADB) assistance for the capital market development," LankaBangla Securities said in its weekly market analysis.
The market witnessed four trading sessions in the week as Sunday was the public holiday following the Holy 'Ashura'. Among those, in the first three sessions DSE lost 152.04 points while it gained sharply by 219.06 points in the last session.
The all share price index DSI went up by 55.66 points or 1.59 percent to end at 3,560.10. The blue-chip index DSE-20 also closed at 3,416.16, rising by 34.90 points or 1.03 percent.
Meanwhile, the CSE Selective Category Index (CSCX) went up by 146.25 points or 1.82 percent to close at 8,166.90.
"News of ADB's sanction of US$300m loan to stabilize the capital market acted as 'catalyst' for the upturn. The SEC repealed margin loan rules regarding category change and new listing, which also created positive sentiment among the investors. The above two was coupled with some 'natural buy," stated IDLC Investments in its weekly analysis.
BBN/SSR/AD-01Dec12-11:30 am (BST)
