The Financial Express

Weekly review: Stocks continue gaining amid growing optimism

Daily average turnover jumps 62pc on DSE

| Updated: August 11, 2020 09:48:55

Evaly and Fianancial Express Evaly and Fianancial Express
FE file photo FE file photo

Stocks extended the winning streak for the seventh consecutive week that ended on Thursday as enthusiastic investors showed their buying spree on sector-wise issues throughout the week riding on new hopes.

Week-on-week, DSEX, the key index of the Dhaka Stock Exchange, went up by 150.40 points or 3.57 per cent to settle the week at 4,364.

The DSE core index added more than 404 points in the past seven consecutive weeks.

Market operators said investors continued their buying binge on sector specific stocks with strong optimism following gradual reopening of the economy, expansionary monetary policy and no major spike in Covid-19 new cases.

The stock market regulator's assurance not to lift floor price restriction until the market gets stable also led investors for buying shares at possible lowest prices, said a merchant banker.

He noted that the expansionary monetary policy declared by the central bank also created positive impact on the investors.

The securities regulator's hard stance on ensuring mandatory 2.0 per cent shareholding by each director of listed companies had also a positive impact on the stock prices in recent times, he added.

UCB Capital Management said the investors regained optimism following gradual reopening of the economy and announcement of an expansionary MPS.

It noted that investors' buying spree on insurance sector continued throughout the week and pharmaceuticals sector also continued to get attention.

General insurance sector gained 9.10 per cent last week, followed by life insurance with 4.60 per cent, pharmaceuticals 4.40 per cent and power 3.80 per cent.

The week featured four trading days instead of usual five as the market closed on Sunday due to Eid holiday and all four sessions closed higher.

Two other indices also nudged higher. The DS30 index, comprising blue chips, jumped 55.24 points to close at 1,475 and the DSE Shariah Index rose 34.61 points to settle at 1,011.

The total turnover, a crucial indicator of the market, rose to Tk 29.04 billion as against the previous week's total turnover of Tk 22.33 billion despite last week saw four sessions.

The daily turnover averaged Tk 7.25 billion, which was 62 per cent higher than the previous week's average of Tk 4.46 billion.

The investors' buying appetite continued following the expansionary monetary policy by the central bank to revamp the economic activities, particularly private sector credit growth and the country's ailing capital market, commented International Leasing Securities.

The stockbroker noted that the investors are expecting the monetary policy would encourage the institutional investors to inject fresh fund into the stock market.

Of the traded issues, 260 closed higher, 42 ended lower and 57 remained unchanged during the week on the DSE floor.

The market capitalisation of the DSE rose to Tk 3,336 billion Thursday, the last trading session of the week which was Tk 3,257 billion in the opening day of the week.

The Chittagong Stock Exchange (CSE) also ended higher with its CSE All Share Price Index - CASPI -soaring 444 points to settle at 12,401 and the Selective Categories Index - CSCX rising 262 points to close at 7,512.

Of the issues traded, 208 gained, 34 declined and 57 remained unchanged on the CSE.

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