Dhaka stocks soared in the past week after suffering losses in the previous two weeks as investors went on a buying spree due to the Bangladesh Bank’s move to set up a special fund for the stock market.
DSEX, the key index of the Dhaka Stock Exchange, soared by 2.51 per cent or 111.65 points, to close at 4,564.61 points on the last trading session in the past week on Thursday, after shedding 60 points in the previous two weeks.
After falls in the first two trading sessions of the week, the market surged in the last three sessions as the investors went for heavy buying following the Bangladesh Bank’s circular allowing the formation of a special fund for the stock market.
The central bank on February 10 issued an order allowing each schedule bank to borrow up to Tk 200 crore from the central at low interest rate to invest in the stock market.
The investors expected that the banks would invest in the capital market as share prices of most of the companies were trading at very lucrative levels after the recent market turmoil.
EBL Securities in its weekly market commentary said, ‘DSEX, the broad based index of the Dhaka bourse, rallied this week on Bangladesh Bank’s declaration to provide special fund support for the ailing capital market, which caused an upsurge in the index of 112 points or 2.5 per cent.’
‘Investors cheered up after the declaration and engaged in massive trading activities amid optimism,’ it said.
Average share prices of non-bank financial institutions, energy, bank and textile sectors advanced by 9.9 per cent, 2.7 per cent, 2.1 per cent and 1.5 per cent respectively.
Market operators said that the BB move instilled enthusiasm into the market which had been volatile over the worries over impact of coronavirus outbreak in China on Bangladesh’s external trade, poor earnings disclosures by companies and lack of investors’ confidence in the market.
Out of the total 358 shares traded in the past week, the prices of 246 advanced, 94 declined and 18 remained unchanged.
The daily average turnover on the DSE advanced to Tk 519.30 crore last week compared to Tk 444.41 crore in the week before.
Shariah index of the bourse DSES added 1.79 per cent, or 18.4 points, in the past week following which it closed at 1,045.82 points.
DS30, the blue-chip index of the DSE, jumped by 1.5 per cent, or 22.77 points, and closed at 1,536.63 points.
LafargeHolcim Bangladesh led the turnover chart after shares worth Tk 126.53 crore were traded in the past week.
Khulna Power Company, Indo-Bangla Pharmaceuticals, ADN Telecom, Orion Infusion, Shepherd Industries, SK Trims, SS Steel, Bangladesh Shipping Corporation and Golden Harvest Agro Industries were the other turnover leaders.
Orion Pharma outperformed others in the past week with a rise in share prices by 34.89 per cent while Shyampur Sugar Mills fared the worst with a plunge in share prices by 12.28 per cent.
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