Stocks advance for 4th straight week

Stocks continued another week of gains securing the bullish trend for the four straight weeks backing on the increased participation of investors on the trading floor fueled by their optimism about the improved economic outlook in coming days.

Out of the five trading days this week, three sessions closed higher, thanks to investments into large-cap companies.

The DSEX, the benchmark index of the Dhaka bourse added 51.41 points or 0.79 per cent to settle the week at 6,560.

The prime index surged 411 points in the 18 working days of the last four weeks.

Besides, the DS30, the blue-chip index, gained 70.52 points to close the week at 2,376, while the DSES, the Shariah-based index, surged 32.06 points to 1,441.

Turnover, another important indicator of the market, stood at Tk9091 crore, down 4.44 per cent compared to Tk9514 crore in the previous week.

The turnover averaged out at Tk1,818 crore this week as against Tk1902 crore in the previous week.

The equity indices on the Dhaka bourse managed to maintain the upward momentum despite volatility, driven by investors’ buying appetite for some particular stocks in an attempt to rebalance their portfolios, said EBL Securities in its weekly market review.

Positive expectations from the upcoming earnings disclosures of the June-closing companies also tempted the investors, it added.

Meanwhile, many stocks went through corrections due to the profit-booking tendency of a section of investors, taking advantage of the recent uptrend in the market, the EBL review continued.

Out of the five trading sessions, the market witnessed a negative note in the first two sessions with giving up 0.29 per cent and 0.90 per cent respectively.

The market however, turned back into positive territory in the next three sessions, helping the market retain the previous three week’s gaining streak.

Financial sectors posted a mixed performance this week.

Jute sector topped the gaining chart on the prime bourse with a gain of 4.6 per cent followed by cement (3.1 per cent) and life insurance (1.47 percent).

Mutual Funds suffered the most, giving up 4.28 per cent, followed by non-bank financial institutions (2.22 per cent) and general insurance (1.18 per cent).