Dhaka stocks saw a rise in its indices in the past week, after dropping for consecutive two weeks, as a section of investors bought beaten down scrips with hope for short term gains after the recent market correction, as well as fundamentally good shares amid ongoing earning season.
The DSEX, the benchmark index of the Dhaka Stock Exchange, increased by 32.61 points, or 0.64 per cent, closing the week at 5,166.53 points after a fall of 60.51 points in the previous week.
The DSE operated on five sessions in the past week, among which the first three sessions witnessed increase in its key index, and the remaining two saw decrease.
Several sector-specific stocks, including BRAC Bank, Kohinoor Chemicals, Square Pharmaceuticals, Beximco Pharmaceuticals, and ADN Telecom, helped most to pull the market this week.
These five stocks contributed a total of 17.2 points to the rise of the DSEX index.
In addition, the recent decline in 10- year government bond yields also boosted investor confidence in the equity market.
According to EBL Securities weekly commentary, the decrease in yield, driven by factors such as declining credit demand and recent liquidity injections, is likely attributed to expectations of lower future policy rates.
鈥楾he expectation of a decline in policy rate has likely boosted investor confidence and encouraged investment in stocks for higher returns. However, sellers started to exert their influence in the latter part of the week, leading to a market correction in the last two sessions,鈥� it said.
However, inflationary pressure and other economic outlooks remain a concern for the investors.
The tax and VAT hikes by the National Board of Revenue for over a hundred items would eventually worsen the current inflationary pressure in the country, experts said.
On January 9, the revenue authority increased VAT and taxes for over a hundred items. The NBR later revised down the VAT and supplementary duty on a number of items, including restaurants, mobile phone usage, internet services and medicine amid protests.
The average daily turnover on the DSE increased slightly to Tk 412.67 crore from Tk 378.07 crore in the previous week.
Of the 397 issues traded, 201 gained, 46 lost value and 150 remained unchanged.
The DS30 index, which tracks blue-chip stocks, increased by 18.77 points, or 0.99 per cent, to close at 1,913.04 points.
The DSE Shariah index gained 11.21 points, or 0.97 per cent, ending at 1,161.85 points.
ADN Telecom Fine Foods led the turnover chart, with an average weekly turnover of Tk 23.43 crore.
Orion Infusion, Midland Bank, Taufika Foods and Lovello Ice-cream, Khan Brothers PP Woven Bag Industries, Asiatic Laboratories, Kohinoor Chemicals Company (Bangladesh), Oimex Electrode, Aftab Automobiles, and Far East Knitting & Dyeing Industries were the other turnover leaders.