Dhaka stocks continued to rise last week, fourth week in a row, with the bourse’s key index hitting a new high as investors continued to inject fresh fund amid an anticipation of another share market bubble. The benchmark general index of Dhaka Stock Exchange, DSEX, increased by 4.06 per cent, or 183.30 points, over the week to close at 4,701.66 points on Thursday, last trading day of the week.
DS30, the blue-chip index of the bourse, closed at 1,664.10 points, adding 4.48 per cent or 71.32 points.
The DSEX and the DS30 increased to their highest points last week since their launch with 4,055.90 points and 1,460.30 points respectively on January 28 last year.
Market operators said investors were injecting fund as they were anticipating another bubble at the market after the formation of government by Awami League-led alliance for a fresh term.
In 2009-2010, DGEN, the old benchmark general index of the DSE, had increased abnormally. The same thing happened in 1996. On both occasions, the bubble burst.
An eased political situation as the BNP-led alliance refrained from declaring any tough programme against the government after the national elections boosted investors’ confidence, they said.
They said an expectation of a relaxed monetary policy from Bangladesh Bank for January-June period also made investors optimistic.
The DSEX and the DS30 gained 501 points and 215 points respectively in the last four weeks.
Daily average turnover at the DSE increased to Tk 739.66 crore last week from Tk 651.69 crore in the previous week.
Of the 299 shares and mutual funds traded in the week, 217 advanced, 74 declined and eight remained unchanged.
‘As political activities cooled down and economic activities heated up, investors went into a buying mode throughout the week,’ IDLC Investments said in its daily market commentary.
It said, ‘Upcoming monetary policy also helped investors form investment decisions.’
The week marked introduction of the first ever Shariah index, DSES, which gathered 34 points, it added.
Cement sector gained the most on the week, increasing by 7.31 per cent following the government’s announcement over the construction of Padma Bridge. The sector gained 6.61 per cent in the previous week.
Padma Oil led the turnover leaders in the week with its shares worth Tk 113.55 crore changing hands.
Meghna Petroleum, LankaBangla Finance, United Commercial Bank, Olympic Industries, Summit Purbanchol Power Company, Square Pharma, Appollo Ispat Complex, Confidence Cement and United Airways were among the other turnover leaders.
ICB AMCL Islamic Mutual Fund gained the most in the week with a 23.66-per cent increase in its share price, while Rupali Life Insurance Company lost the most, shedding 26.86 per cent.
-With New Age input
