Dhaka stocks saw a big increase in the past week, thanks to a surge in the last three trading sessions of the week as investors started to regain confidence in the market after the fall of Sheikh Hasina-led government on August 5, market operators said.
Before the past week鈥檚 gain, the market fell for three weeks in a row.
DSEX, the key index of the Dhaka Stock Exchange, increased by 590.87 points, or 11.08 per cent, in the past week to end at 5,924.81 points on August 8.
The main stock index jumped by 695.17 points in the last three days of of the past week, including a single-day highest surge in four and a half years on August 8.
On August 4, the DSEX lost 104.66 points and on August 5, the market remained closed due a general holiday.
The country experienced deadly violence over student protests against discrimination, with more than 350 people killed by August 5.
The unrests had kept the market subdued, market operators said.
For several months, the market had been struggling with a negative trend caused by various issues, including speculation, a rise in poor-performing stocks, and poor policy decisions, they said.
However, with the recent political changes, investors are beginning to feel hopeful, they said.
As a result, prices of fundamentally strong shares are rising, driven by this renewed sense of hope among investors, they said.
Stockbrokers believe that this positive trend could continue if the market and political situation stabilise further.
President Mohammed Shahabuddin dissolved the parliament on August 6 and an interim government, led by Nobel laureate Muhammad Yunus, was sworn in on August 8.
However, experts said that this sudden surge was a matter of concern, as there was no clear sign of improvement of the market except for the political change.
Mentioning that all economic indicators of the country were poor, experts said that the聽interim government face hard challenges to get the economy back on track.
Experts urged the investors to be cautious of rumours and more analytical before investing.
The total turnover on the DSE increased by 74.34 per cent in the past week, to reach Tk聽3,339.86 crore, compared with that of Tk 2,394.60 in the previous week.
The Dhaka bourse experienced a significant increase in its market capitalisation, by Tk聽58,468.47 crore, in the last three sessions of the past week.
Of the 397 stocks traded in the past week, 339 went up, 47 went down and 11 stayed the same.
Investors were mostly active in pharmaceutical scrips, followed by the bank and food shares.
EBL Securities in its weekly market commentary said, 鈥楧espite starting the week on a depressionary note due to political uncertainty, investors reacted positively to the latest major political shift which triggered a relentless buying spree across the trading floor over the last three trading sessions of the week.鈥�
The DSE Shariah index increased by 109.53 points, or 9.40 per cent, to close at 1,274.91 points in the past week.
The DS30 index gained 231.88 points, or 12.20 per cent, to finish at 2,132.73 points.
British American Tobacco Bangladesh topped the average weekly turnover chart with shares worth Tk聽34.72 crore changing hands per session.
Square Pharmaceuticals, City Bank, Unilever Consumer Care, BRAC Bank, Techno Drugs, Uttara Bank, Sea Pearl Beach Resort & Spa, Trust Bank and Robi Axiata were some of the other turnover leaders.
