Stocks break straight 13-week losing streak

The country’s stock market has bounced back overcoming a straight 13-week losing streak. DSEX, the prime index of the DSE increased by 20.57 points or 0.39 percent to close at 5,286 last week over the previous week after losing 775 points in the past 13 weeks. Meanwhile, the comprising blue chips index (DS30) rose by 6.64 points during the week to settle at 1,870 on Thursday and Shariah index (DSES) increased 10 points to finish at 1,225 in span of a week.

Market analysts said buoyant investors have again showed buying spree on sector-wise securities amid market-supportive measures from the securities regulators. They said the capital market has picked up an upward trend as the Prime Minister's assurance, and securities regulator's market-supportive measures, coupled with National Board of Revenue (NBR) Chairman's positive remarks, encouraging investors to remain positive.

They expect the market will recover following the government initiatives. The daily average turnover increased by 12.23 percent to 3.83 billion during the week from 3.41 billion in the previous week. Besides, the total turnover rose on the DSE amounting to Tk15.13 billion against Tk13.66 billion in the week before.

The gainers beat over the losers as out of 350 issues traded during the last week, 214 closed higher, 110 ended lower and 26 remained unchanged on the DSE floor. The power sector witnessed the highest gain of 3.02 percent. It was followed by engineering (1.56 percent), non-bank financial institutions (1.28 percent) and pharmaceuticals (0.42 percent).

On the other hand, the food sector saw the highest loss of 2.95 percent. It was followed by telecommunications (1.70 percent) and banking sector (0.84 percent). The market cap has declined by 0.15 percent to Tk 3,888 billion on Thursday against Tk 3,894 billion on first working day of the week. Fortune Shoes dominated the turnover chart on the DSE’s floor with 15.73 million shares worth Tk 1.28 billion changing hands.

It was followed by National Polymer, Monno Ceramic, United Power and Genex Infosys. Genex Infosys was the week's best performer, posting a gain of 22.76 percent while Agrani Insurance was the worst loser, shedding 18.06 percent. Meanwhile, the Chittagong Stock Exchange (CSE) also saw positive trend during the last week with its selective category index (CSCX) gaining 13.62 points to close at 9,784 points.

On the other hand, the all share price index of the CSE (CASPI) was higher by almost 14.27 points during the week to close at 16,161 points. Economists said the capital market is very important for a country in boosting industrialisation to attain a stronger economic base. They said the government should build a strong stock market to ensure safety for investment.

Economists hoped the government would give a long-term support to help build a bullish market which is much essential to ensure the country’s development properly.