Weekly stock market review: Stocks rebound amid optimism

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Average daily turnover up 5.61% on the stock market premium







The market rebounded this week through Wednesday, erasing some losses from the previous week, as investors poured new money into equities amid optimism following the central bank’s decision to stabilize interest rates. exchange.

All three trading days of the week posted gains as the market remained closed on Monday and Thursday due to public holidays.

DSEX, the key index of the Dhaka Stock Exchange (DSE), climbed 92.67 points or 1.51% to settle for the week at 6,241.44, after losing more than 163 points the previous week.

Market participants said the central bank had tightened the spread between the buying and selling rates of the US dollar to contain currency volatility, which helped improve investor sentiment to some extent.

Bangladesh Bank this week set the spread between buying and selling rates of the greenback at 1.0 Tk for banks, while the spread for currency swaps is 1.50 Tk.

General investors increased their stake hoping the market will not fall further due to regulatory assurances to keep the “price floor” in place until further notice, an investment banker said.

He noted that investors have gained some confidence amid a continued downward trend in fuel prices in the global market as well as some stability in the forex market.

Some positive economic indicators such as increased remittances, lower imports, lower inflation and positive export growth have also prompted investors to pour new funds into stocks, he said. declared.

Market participants have reacted positively to recent moves by the central bank to tighten the dollar spread to manage ongoing currency volatility as well as the continued decline in oil prices in global markets, EBL Securities said.

“The announcement of the fuel price adjustment in the local market according to the global market price also played a role in changing investor sentiment,” the stockbroker said.

International Leasing Securities said the securities regulator’s assurance that the “price floor” will remain in place until further notice has boosted investor confidence in the market.

Total turnover for the week stood at 28.38 billion taka on the main exchange compared to 35.84 billion taka the previous week, this week having seen only three trading days and the previous week four days.

Daily turnover averaged 9.46 billion taka, up 5.61 percent from the previous week’s average of 8.96 billion taka.

Investors mainly focused on the textile sector, capturing 20% ​​of total turnover for the week, followed by the miscellaneous sector (14.2%) and the pharmaceutical sector (9.5%).

Two other DSE indices also ended higher this week. The DS30 index, made up of blue-chip companies, rose 25.66 points to close at 2,220.05 and the DSES index advanced 20.67 points to end at 1,366.38.

Almost all sectors recorded gains this week, with the cement sector registering the highest gain of 6.10%, followed by textiles with 3.50%, general insurance 2.10%, financial institutions 1 70%, pharmaceuticals 1.60% and engineering 1.50%.

The winners took a strong lead over the losers, as out of 388 issues traded, 257 closed higher, 42 lower and 89 remained unchanged on the DSE trading floor.

Beximco became the most traded stock with shares worth Tk 2.10 billion changing hands, followed by Malek Spinning Mills, IPDC Finance, Fortune Shoes and LafargeHolcim.

Kay & Que was the week’s biggest gainer, rising 21.31%, while 1st Janata Bank Mutual Fund was the day’s worst loser, plunging 3.13%.

The Chittagong Stock Exchange (CSE) also rebounded with the CSE All Share Price Index (CASPI) gaining 243 points to settle at 18,370 and its Selective Categories Index (CSCX) up 146 points to end the week at 11,006. .

Of the issues traded, 184 advanced, 54 declined and 87 remained unchanged on the CSE floor.

The port city stock exchange traded 21.45 million shares and mutual fund units with a turnover value of 586 million taka.

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