The Financial Express

Weekly market review: Stocks extend rally amid eased virus concerns

| Updated: May 11, 2021 10:53:53

Weekly market review: Stocks extend rally amid eased virus concerns

Stocks extended the winning streak for the fourth consecutive week as investors continued their buying interest based on better-than-expected earnings and eased virus worries.

The week saw five trading days as usual. Of them, four sessions closed higher while one faced mild correction.

Week-on-week, DSEX, the core index of the Dhaka Stock Exchange (DSE), went up by 126.40 points or 2.31 per cent to settle at 5,606. DSEX added more than 351 points in the past four consecutive weeks.

Two other indices also kept rising with the DSE30 Index, comprising blue chips, rose 26.37 points to finish at 2,137 and the DSE Shariah Index (DSES) advanced 2.37 points to close at 1,252.

The week's total turnover on the prime bourse jumped to Tk 68.07 billion which was Tk 53.22 billion in the week before.

The daily turnover averaged out at Tk 13.61 billion, which was 28 per cent higher than the previous week's average of Tk 10.64 billion.

Market operators said the investors are hopeful about the market as stocks have been in a rising trend for the last few weeks amid easing virus worries coupled with regulatory initiatives.

Investors continued their buying interest on selective large-cap stocks amid growing confidence to the market as recent market momentum showed optimism, said a merchant banker.

He noted that the market rally came on the back of positive macroeconomic indicators in the country like remittance, foreign reserve coupled with better-than-expected earnings declarations despite pandemic.

He noted that lower return from money market, easing virus worries coupled with extension of margin loan cap implementation time for another six months, continued to lure investors to put fresh funds on stocks.

Easing of Covid-19 restrictions, earnings upsurge amid the pandemic and satisfactory dividend declarations boosted the investors' confidence, commented EBL Securities.

The stockbroker noted that the investors mainly focused on banking and financial sector stocks which uplifted the market.

According to International Leasing Securities, the investors showed their buying appetite amid the positive movement of macro-economic indicators and the regulatory initiatives to restore confidence of the investors in the market.

The investors' enthusiasm sustained as the securities regulator has approved the 'Capital Market Stabilisation Fund' with the investors' unclaimed shares and cash with the listed companies, merchant banks and brokerage houses which are expected to be Tk 200 billion, said the stockbroker.

Buoyancy in textile, banking, financial institution, mutual fund, engineering and power sectors led the benchmark index to close above 5600-mark during the week.

Textile sector showed robust performance last week as out of top 10 gainers, seven came from textile sector.

Textile sector generated the highest return, gaining 9.40 per cent, followed by mutual fund with 8.20, banking 5.40 per cent and financial institutions 4.70 per cent.

On the other hand, telecom, cement and pharmaceuticals saw mild correction of 0.50 per cent, 0.40 per cent and 0.10 per cent respectively.

Gainers took a strong lead over the losers, as out of 371 issues traded, 254 advanced, 69 declined and 48 remained unchanged on the DSE trading floor.

The Chittagong Stock Exchange (CSE) also kept gaining with the CSE All Share Price Index - CASPI -soaring 364 points to settle at 16,208 and the Selective Categories Index - CSCX- rising 214 points to close at 9,774.

Of the issues traded, 221 advanced, 69 declined and 32 remained unchanged on the CSE trading floor.

The port city's bourse traded 83.09 million shares and mutual fund units with turnover value of Tk 2.32 billion.

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