DSEX gains for 2nd straight week spurred by easing credit facilities

The benchmark DSEX index gained for the second conservative week due to the positive sentiment lifted by the easing credit facilities.

The rally was led by mainly financials that flexed muscle in the past week ended on Thursday.

The DSEX rose 1.4 per cent or 96 points to close at 7,092 points.

The market got some steam after the Bangladesh Securities and Exchange Commission on Monday directed the brokerage firms to extend margin loans considering PE ratio instead of index-based.

That means an investor will get 80 paisa against the investment of Tk 1 up to the level of the PE ratio. The new directive went into effect from Tuesday.

The market cherished the news of the relaxing credit facilities and performed well after witnessing volatility over the last several sessions, dealers say.

“The new move brought back some investors back to the market,” said a top broker.

Besides, the announcement of a new fund of Tk 100 crore to increase market liquidity has had a positive impact.

Investors have applied buying pressures this week on the December ending stocks (Bank, NBFI, Insurance etc.) which rallied the market forward, mentioned weekly research prepared by EBL Securities.

Market witnessed investor’s enthusiastic participation this week as the average turnover advanced by 18.55 per cent to stand at Tk 1,399 crore. However in the previous week average turnover was 1,179, which was six months low, it said. EBL Securities also mentioned that investors were mostly active in bank (25.2 per cent), pharma and chemical (12.4 per cent) and miscellaneous (12.3 per cent) sectors.

Sectors witnessed mixed performance last week, out of which bank (8.5 per cent), IT (5.8 per cent) and life insurance (3.2 per cent) witnessed positive performance while jute (-6.9 per cent), ceramic (-5.4 per cent) and services (-4.6 per cent) experienced most corrections in last week.

In the past week, DSE market capitalisation increased around Tk 9,000 crore or 1.62 per cent to Tk 5.61 lakh crore, which was Tk5.52 lakh crore in the previous week.

In terms of closing price, the top gainer company was Sena Kalyan Insurance in Dhaka bourse, a newly listed company as its share price increased 60 per cent in last week.

On the other hand, National Mill was the top loser as its share price declined 19.33 per cent in same period.

The port city bourse, CSE also registered gain past week with CSCX and CASPI advancing by 141.8 and 225.9 points respectively.