Stocks extended the winning spell for the two consecutive weeks that ended Thursday as some investors showed their buying appetite on bank issues amid optimism.
Brokers said the market maintained the positive trend for the second week in a row amid budget hype though there was no incentives for stock investors in the new budget for the fiscal year 2017-18.
Finance Minister AMA Muhith proposed to keep the existing tax rate unchanged for publicly traded companies at 25 per cent and for non-publicly traded companies at 35 per cent.
However, the leaders of both bourses demanded continuation of full tax exemption facility for another three years, increase the ceiling of tax-free dividend income to Tk 100,000 from the existing Tk 25,000 and reduction of tax at source on share transactions to 0.015 per cent from existing 0.05 per cent. But, it did not get any attention in the proposed budget.
"The government’s recent decision to cut yield rates of savings instruments also prompted investors to take fresh position anticipating short-term rally," said an analyst at a leading brokerage firm.
The week witnessed five trading sessions as usual. Of them, first two sessions faced correction while last four closed higher.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 24.89 points or 0.46 per cent to settle at 5,439.
The DS30 index, comprising blue chips, also advanced 11.37 points or 0.57 per cent to close at 2023. However, the DSE Shariah Index fell 1.63 points or 0.13 per cent to close at 1,259.
The port city bourse, Chittagong Stock Exchange (CSE), also edged higher with its Selective Categories Index, CSCX, advancing 49 points or 0.48 per cent to settle at 10,208.
International Leasing Securities, a stockbroker, said, "The stock market maintained its positive vibe amid rising confidence from the investors".
The stockbroker noted that the market participants remained inactive from the beginning of the week regarding the national budget, ongoing Ramadan and finance minister's stance to keep 15 per cent uniform value added tax rate.
"The optimistic investors showed their buying interest on large-cap stocks, especially from bank, fuel & power and telecom sectors that helped the indices to end the week in green," said the stockbroker.
The total turnover for the week came down to Tk 20.56 billion, registering a decline of 24 per cent over the previous week's Tk 26.99 billion.
The daily turnover averaged at Tk 4.11 billion, which was 24 per cent lower than the previous week's average of Tk 5.40 billion.
Textile sector emerged as the week's turnover leader, capturing 19 per cent of the week's total turnover value, followed by bank 13 per cent and fuel and power 12 per cent.
LankaBangla Securities, a stockbroker, said, "Three out of five trading days closed green last week. Most likely due to budget announcement, market participation was lower than previous week".
IDLC Investments, a merchant bank, said, "The market continued the bullishness on the wake of national budget for fiscal year 2017-18".
Large-cap sectors showed mixed performance. Bank posted the highest gain of 1.83 per cent, followed by fuel and power 0.84 per cent, telecommunication 0.20 per cent, pharmaceuticals 0.06 per cent and food and allied 0.05 per cent.
Engineering and financial institutions sectors faced correction of 0.82 per cent and 0.17 per cent respectively.
However, the losers took a modest lead over the gainers as out of 332 issues traded, 173 closed lower, 128 closed higher and 31 remained unchanged on the DSE trading floor.
The total market capitalisation of the DSE advanced 0.28 per cent last week as it was Tk 3,691 billion on the opening day of the week, while it came down to Tk 3,702 billion on closing day of the week.
IFAD Autos topped the week's turnover chart for the third straight week with about 5.58 million shares of Tk 747 million changing hands, closely followed by United Power Tk 648 million, LankaBangla Finance Tk 637 million, Brac Bank Tk 635 million and Evince Textile Tk 559 million.
Tosrifa Industries was the week's highest gainer, posting a 12.11 per cent rise, while Mutual Trust Bank was the worst loser, shedding by 11.85 per cent.
One new issue- Nurani Dyeing & Sweater - made trading debut last week. The new comer's share price jumped 108 per cent to close at Tk 20.80 each on DSE from its offer price of Tk 10.
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