Dhaka, Bangladesh (BBN)– Bangladesh’s stocks extended gain last week that ended on Thursday as some investors brought shares despite political tension.
The prime index of the major bourse posted a 2.29 percent return, the last week of 2018, as the prominent sectors performed well led by banking and telecom.
Keeping the national election ahead and welcoming the New Year 2019, market saw seven consecutive positive sessions as investors showed their buying appetite amid post-election positive expectations, brokers said.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 120.32 points or 2.29 percent to settle the week at 5,385 points.
However, DSEX slumped 14 percent or 859 points year-on-year in 2018, hitting five years highest loss since 2013.
The week saw four trading sessions instead of five as the market closed on Tuesday due to Christmas Day. All four trading days ended higher.
The bourses will remain closed on December 30 (Sunday) due to national elections and December 31 (Monday) due to bank holiday.
An analyst said the securities regulator’s positive move on margin rules, post-election expectations coupled with year-end effect helped the market to close higher.
The two other indices also ended higher. The DS30 index, comprising blue chips, advanced 38.67 points to finish at 1,880 and the DSE Shariah Index rose 23.45 points to close at 1,232.
The total turnover also rose to BDT 16.37 billion last week, up from BDT 15.10 billion in the week before, as last week also saw four trading days like previous week.
The daily turnover averaged BDT 4.09 billion, registering an increase of 8.49 percent over the previous week’s average of BDT 3.77 billion.
EBL Securities said investors anticipated that the market would be better after the national elections which prompted the investors to take fresh position.
Block trade contributed 4.80 percent to the week’s total turnover where stocks like SK Trims & Industries, Brac Bank, Square Pharma, Trust Bank and Confidence Cement dominated the block trade board.
According to International Leasing Securities, optimistic investors took position on under-priced shares, particularly in bank and financial institutions sectors in anticipation of obtaining good return after national polls.
Apart from these two sectors, telecom, engineering, pharma, food and textile sectors also saw buying spree which helped the benchmark index to close higher, said the stockbroker.
Of the 346 issues traded, 210 closed higher, 112 ended lower and 24 issues remained unchanged on the DSE trading floor.
The Khulna Power Company topped the week’s turnover chart with 10.22 million shares worth BDT 624 million changing hands.
The other turnover leaders were United Power, Brac Bank, Beximco and Paramount Textile.
BD Autocars was the week’s best performer, posting a gain of 34.33 percent while Anlimayarn Dyeing was the biggest loser, shedding 12.91 percent.
The port city bourse, Chittagong Stock Exchange (CSE), also ended higher, with its CSE All Share Price Index — CASPI –soaring 311 points to settle at 16,449 and the Selective Categories Index — CSCX – soaring 184 points to finish at 9,947.