Dhaka stocks witnessed increase in share prices in the past week, ending bearish vibe of the previous five consecutive weeks, as bargain hunters went for low priced scrips hoping for quick gains, market operators said.
They said that investors became hopeful after the Bangladesh Securities and Exchange Commission and the Dhaka Stock Exchange put in efforts to improve the market condition.
DSEX, the key index of the Dhaka Stock Exchange, gained 84.8 points, or 1.66 per cent, in the past week to end at 5,199.40 points.
The DSEX lost about 620 points in the past five weeks.
The Dhaka bourse operated in five sessions in the past week, among which it gained in three sessions and lost in the other two.
The stock market regulator formed an inquiry committee to investigate reasons behind unusual market fall, which helped to increase investors鈥� confidence.
Finance adviser Salehuddin Ahmed in a meeting with the BSEC on October 30 said that steps were being taken to provide immediate solutions to the existing crises on the country鈥檚 stock market and promised liquidity support which bolstered overall market sentiment.
Some of the listed companies declared dividends and a few posted profits in their earning declarations, which put a positive impact upon the investors.
Stockbrokers said that higher bank interest rates introduced by the Bangladesh Bank had made it more appealing to invest in fixed-income options instead of the stock market.
The daily average turnover on the DSE increased in the past week to reach Tk聽416.65 crore compared with that of Tk 338.68 crore in the previous week.
Of the 395 issues traded in the past week, 279 increased, 101 decreased and 15 stayed the same.
Investors were mostly active in bank scrips, followed by pharmaceutical and textile shares.
EBL Securities in its weekly market commentary said, 鈥楾he market began this week with a pessimistic note by exacerbating the prevailing bearish market sentiment, however, the latest earnings and dividend declarations of the listed companies exceeded expectations of the investors, which coupled with discussions of providing liquidity support through ICB and withdrawing the capital gain tax rate stimulated investors鈥� confidence to pull up the benchmark index to settle in the positive territory.鈥�
The DS30 index increased by 46.87 points, or 2.49 per cent, to finish at 1,926.05 points.
The DSE Shariah index gained 0.89 points, or 0.08 per cent, to close at 1,144.90 points in the past week.
Taufika Foods and Lovello Ice-cream topped the average weekly turnover chart with shares worth Tk聽12.75 crore changing hands per session.
BRAC Bank, Islami Bank Bangladesh, Far East Knitting & Dyeing Industries, The IBN SINA Pharmaceutical Industry, Grameenphone, Agni Systems, The ACME Laboratories,聽Bangladesh Shipping Corporation and Asiatic Laboratories聽were the other turnover leaders.
