Dhaka stocks end bullish week

With the positive attitude of investors, the country’s capital market witnessed a rising trend throughout the last week.

DSEX, the benchmark index of Dhaka Stock Exchange, rose to 6,981 points, the highest ever since its inception in 2013. Experts said that the index may cross the 7,000-mark next week.

However, the average daily transaction volume decreased slightly last week, compared to the previous one.

International Leasing Securities, in its weekly market review, said that the benchmark index of the prime bourse maintained upward trend and stayed positive for eleven consecutive weeks as the optimistic investors continued their buying spree amid optimism.

The buoyant investors exerted their enthusiasm as the securities regulator increased the IPO quota for general investors, which encouraged them to the market amid lower return in the money market and limited scope of investment in other instruments.

Meanwhile, the EBL Securities observed that the investors have particularly concentrated on the general insurance sector and certain large cap stocks last week.

The stock market regulator BSEC increased the general investor’s share in the IPO to 70 per cent, which left a positive impact on the market.

International Leasing Securities also mentioned that the investors’ enthusiasm persisted despite the news of Bangladesh Bank’s investigation into money-market transactions along with exposures on the capital market to gauge liquidity movements in the banking system following some already-detected inconsistencies.

DSEX, the market tracking index of Dhaka Stock Exchange (DSE), ended the week with 1.3 per cent or 90 points gain.

The investors applied buying pressure throughout the week as they were expecting the index to cross the 7,000 threshold in the next sessions.

Point-to-point estimates revealed that DSES and DS30 added 21.5 points and 43.4 points respectively to their previous week’s indices.

At the DSE, daily average turnover plunged by 14.3 per cent as some of the investors decided to observe the market trend. The average turnover was Tk 2,234 crore at the DSE in the week, while the market capitalization increased by 1.1 per cent to Tk 5,63,720 crore.  

The investors were mostly active in general insurance (13.2 per cent), textile (12.1 per cent) and engineering (10.5 per cent) sectors.

Most of the sectors experienced positive performance this week. Among them, jute (8.3 per cent), general insurance (7.5 per cent) and tannery (6.3 per cent) witnessed the highest price appreciation while mutual fund (-3.0 per cent), financial institution (-1.6 per cent) and telecommunication (-1.1 per cent) witnessed highest price correction.

Last week, Beximco was the top average turnover and index puller at DSE. The company’s contribution increased the DSEX by more than 29 point. Besides Robi being the index dragger, DSEX fell about 2.5 points as the company’s share price fell.   

In terms of price increase, the top gainer company last week was Tamij Textile in DSE. Its share price hiked almost 40 per cent and stood at Tk 125.6.

The top loser was GrameenS2 mutual fund as its unit price declined 16 per cent to Tk 18.

The jute sector had the highest return as its return was 8.3 per cent.

Last week, state-owned listed company Jamuna Oil signed an agreement with Beximco LPG for the expansion of business. Last week, the port city bourse CSE’s CSE30, CSCX and CASPI added 80.5 points, 231.9 points and 394.3 points respectively.