Dhaka stocks advanced last week after a two-week bear run as the institutional investors, encouraged by the central bank’s directive allowing banks another year to adjust their capital market exposure, remained active on the trading floor despite political unrest across the country. The benchmark general index of Dhaka Stock Exchange, DSEX, closed at 4,314.09 points, adding 2.69 per cent or 113.13 points.
Market operators said the participation of institutional investors on the trading floor increased after Bangladesh Bank on Monday extended time by one more year for adjusting single borrower exposure limit by the commercial banks’ subsidiary brokerage houses and merchant banks.
They said the yearend closing also made the institutional investors more active on the trading floor.
Some state-owned institutions also bought shares to support the market in the week, they said.
DS30, the blue-chip index of the bourse, increased by 3.95 per cent, or 57.13 points, to finish at 1,505.08 points on Thursday, the last trading session of the week.
The DSEX and the DS30 had lost 98.63 points and 42.40 points respectively in the previous two weeks.
The daily average turnover of the week, however, declined to Tk 357.23 crore from Tk 477.11 crore in the previous week.
Of the 294 shares and mutual funds traded, 190 advanced, 74 declined and 32 remained unchanged.
Market operators said the participation of retail investors was thin in the week as they were uncertain about the political outlook in the days to come as the opposition political alliance boycotted the elections to be held today.
‘The bridging week between the year 2013 and 2014 indulged investors with significant return,’ IDLC Investments said in its weekly market commentary.
However, it said, average turnover plunged by 25 per cent as many investors retracted to sideline.
‘Activities centred on the textile sector 19 per cent, engineering 17 per cent and NBFIs 16 per cent this [last] week, IDLC said.
Golden Son led the turnover leaders with its shares worth Tk 78.37 crore changing hands last week.
Appollo Ispat Complex, LankaBangla Finance, Generation Next Fashions, Delta Life Insurance, RN Spinning Mills, Bay Leasing & Investment, Argon Denims, Familytex and Grameenphone were also among the other turnover leaders.
-With New Age input
