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The Financial Express
Swasti Lankabangla Swasti Lankabangla

Weekly market review: Core index adds 742 points in eight straight weeks

| Updated: August 18, 2020 12:03:48


Traders, in protective suits, monitoring stock price movements on computer screens at a brokerage house in the capital city — FE/Files Traders, in protective suits, monitoring stock price movements on computer screens at a brokerage house in the capital city — FE/Files

Stocks witnessed yet another strong bullish week that ended on Thursday, extending the winning streak for the eight consecutive weeks.

The enthusiastic investors put fresh stakes on large-cap stocks throughout the week amid growing confidence in the market riding on regulatory moves to restore discipline in the country's capital market.

Week-on-week, DSEX, the key index of the Dhaka Stock Exchange, went up by 338.5 points or 7.75 per cent to settle the week at 4,703.

The DSE core index added a cumulative 742 points in the past eight consecutive weeks, taking the prime index above 4,700-mark after six months since February 20.

Market experts said investor enthusiasm sustained as local and foreign investors remained active in the market amid high hopes following regulatory measures to develop the ailing market.

The stock market regulator's strict stance on ensuring mandatory shareholding, exemplary punishment handed out to wrongdoers coupled with some positive macro indicators prompted investors to take position on large-cap stocks, said a merchant banker.

The securities regulator's latest stance on ensuring mandatory 2.0 per cent shareholding by each director and 30 per cent shareholding jointly had a positive impact on the stock prices, he said.

The stock market regulator further ordered the listed companies and their board of directors to comply with the directive regarding holding minimum 30 per cent shares jointly by the directors, other than independent ones, within 60 working days from July 29, 2020.

The stock market regulator's assurance not to lift floor price restriction until the market gets stable, no major spike in Covid-19 new cases and gradual reopening of the economy, attracted investors for buying shares, said a leading broker.

He noted that the expansionary monetary policy declared by the central bank expecting that the increased money flow would help revive the economy from the Covid-19 fallout.

UCB Capital Management said in its weekly analysts that investors' revived optimism following increased liquidity and some positive macro economic indicator kept the market vibrant.

According to International Leasing Securities, spontaneous participation backed by growing confidence coupled with persistent upbeat market trend tempted the investors to inject fresh fund on stocks.

The week featured four trading days like previous week as the market remained closed on Tuesday due to Janmashtami. Of them three sessions saw sharp rise while one faced mild correction.

Two other indices also nudged higher. The DS30 index, comprising blue chips, jumped 118.43 points to close at 1,594 and the DSE Shariah Index soared 77.36 points to settle at 1,088.

The total turnover, a crucial indicator of the market, jumped to Tk 45.05 billion which was Tk 29.04 billion in the week before.

The Chittagong Stock Exchange (CSE) also kept rising with the CSE All Share Price Index - CASPI -soaring 960 points to settle at 13,361 and the Selective Categories Index - CSCX rising 560 points to close at 8,072.

Of the issues traded, 226 gained, 56 declined and 32 remained unchanged on the CSE.

The port city's bourse traded 72.62 million shares and mutual fund units with turnover value of Tk 1.57 billion during the week.

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