Dhaka stocks posted gains in the past week, snapping a five-week bear run, as investors went on bargain hunting share purchase, especially from those of financial scrips as they found no measures on squeezing liquidity supply in the central bank’s monetary policy for July-December.
DSEX, the key index of Dhaka Stock Exchange, bounced back 1.78 per cent or 94.62 points over the week to finish at 5,399.79 points on Thursday, the last trading session of the week, after losing 136 points in the previous five consecutive weeks.
The market fell in the first two sessions of the week but soared in the next three sessions as investors went for fresh investment in financial sector scrips after Bangladesh Bank had announced monetary policy.
The BB on July 31 revealed the MPS for the first half (July-December) of the current fiscal year (2018-19) without any major changes in the policy.
Investors went on share purchasing from the day of the MPS announcement as they thought that the new policy had not inducted any change which could harm the financial market.
As a result of the investors’ reaction to MPS, average share prices of banks and non-bank financial institutions rebounded strongly by 5.78 per cent and 2.43 per cent respectively.
Out of 30 traded bank scrips, 28 advanced and just two remained unchanged while out of 23 traded NBFIs, 15 advanced, seven declined and one remained unchanged.
Share prices of textile, telecommunication and energy also gained over the week.
Before the surge in the past week, the market witnessed fall in five consecutive weeks as investors were grappling with a number of issues, including financial sectors fiasco, uncertainty with the single-digit interest rate implementation by banks and its impact on the banks revenue.
Average share prices of cement, engineering and pharmaceuticals sectors declined over the week.
The daily average turnover of the bourse, however, dropped to Tk 685.80 crore in the past week from Tk 890.94 crore in the previous week.
Out of the 342 traded issues, 181 advanced, 132 declined and 27 issues remained unchanged.
DS30, the blue chip index of the DSE, also added 0.46 per cent, or 8.73 points, to close at 1,899.24 points over the week.
Shariah index DSES, added 0.18 per cent, or 2.32 points, to close at 1,262.10 points.
United Power Generation Company led the turnover chart with its shares worth Tk 120.77 crore changing hands.
BBS Cables, Saiham Textile Mills, Fortune Shoes, KDS Accessories, Simtex Industries, IFAD Autos, The Penninsula Chittagong, Legacy Footwear, Pacific Denims were the other turnover leaders.
Renwick Jajneswar gained the most in the week with a 41.34 -per cent increase in its share prices, while Meghna Pet Industries was the worst loser shedding 27.27 per cent.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Stocks