Dhaka stocks gained in the past week after finishing down for two consecutive weeks, as investors went for bargain hunting hoping for the market to rebound after the recent corrections.
DSEX, the key index of the Dhaka Stock Exchange, gained 97.17 points, or 1.76 per cent over the past week, after losing 168.21 points in the previous week.
Market operators said that investors kept an eye on the recent earning disclosures of listed companies, and sought short-term gain opportunities in certain scrips based on that.
They also said that the news of the reappointment of the current chairman of the Bangladesh Securities and Exchange Commission prompted investors to be hopeful and get active on the buying side.
The key index posted three fresh record lows in the previous week, as panic driven investors had continued selling shares to protect their funds amid economic worries in the country and global geopolitical tensions.
In the past 11 weeks, the market moved forward on only two weeks, including the past week.
Market experts said that rising bank interest rate might have influenced investors to shift their funds to the sector.
They also said that the prevailing uncertainties, stemming from economic and political factors, and the decision to impose circuit breaker limit by the Bangladesh Securities and Exchange Limited contributed to a subdued atmosphere, affecting investor confidence and engagement in the market.
The BSEC on April 24 restricted share price fall at maximum 3 per cent for all companies but those which are still under floor price restriction.
Market operators said that multiple factors were working behind the prolonged bearish trend of the stocks, such as lack of investor confidence, increase in the lending rate, liquidity crisis in banks, crisis in foreign exchange reserves, sudden change of policies and ongoing global economic uncertainties.
The Dhaka Stock Exchange operated on five trading sessions in the past week, among which four sessions witnessed gain.
Out of the 395 issues, 228 advanced, 133 declined and 34 remained unchanged in the past week.
With the increase of the activity on the buying side, the weekly turnover of the DSE witnessed an increase, by 27.66 per cent to Tk聽2,823.73 crore in the past week compared with that of Tk聽2,764.90 crore in the previous week.
Investors were mostly active in pharmaceutical scrips, followed by textile and food shares.
EBL Securities in its weekly market commentary said, 鈥楾he reappointment of the BSEC chairman instilled some positive anticipation among investors over a potential turnaround from the depressed state of market momentum. However, the NBR鈥檚 proposal to impose capital gain taxes in the next financial year somewhat affected investor sentiment.鈥�
The DSE Shariah index increased by 15.16 points, or 1.25 per cent, to close at 1,232.43 points in the past week.
The DS30 index gained by 33.35 points, or 1.69 per cent, to finish at 2,007.86 points.
Malek Spinning Mills topped the average weekly turnover chart with shares worth Tk聽39.16 crore changing hands daily.
Asiatic Laboratories, Alif Industries, Taufika Foods and Lovello Ice-cream, Orion Infusion, IT Consultants, Sonali Aansh Industries,聽Golden Son, Orion Pharma聽and Salvo Chemical Industry were the other turnover leaders.