The stock markets open today after witnessing an extremely nervous week due to weak economic data. However, the stocks had managed to rally in the week.
Although the market started on happy note in the begining, quick correction in the mid-week eroded the early gains, making the market flat.
During the week which ended on Thursday, the benchmark index of Dhaka Stock Exchange, DSEX, settled at 4,573, rising over 42 points or 1%. The index also gained 90 points in the previous week.
The blue-chip comprising index DS30 edged 8 points or 0.5% higher to 1,729. The DSE Shariah Index, DSES, added marginally 9 points or 0.8% to 1,101.
The Chittagong Stock Exchange Selective Categories Index, CSCX, closed at 8,507 rallying 91 points or 0.5%.
The market activities remained buoyant due to strong selling and buying pressure, recording an average turnover of Tk440 crore on DSE, up nearly 23% over the previous week.
Financial stocks came to spotlight during the week as banks, non-banking financial institutions and life insurance rose 2.5%, 1% and 3.5% respectively.
Low-cap textile sector was also the star performer, driven by new issue Simtex Industries that made its debut in the past week and attracted investors. Telecommunication, cement and pharmaceuticals moved up slightly while food and allied, power, mutual fund and ceramics faced erosion during the past week.
LankaBangla Securities said the market passed a volatile period in the past week with increased selling pressure as investors prompted to cash in on stocks and remain in the sideline amid weak economic condition.
It said the Planning Commission has lowered the GDP estimate set for the current fiscal year, citing the downward trend in the economy and stammering investment situation.
IDLC Investments said opening session of the week was indicating a robust uptrend which could not sustain as selling pressure was accumulating strength, backed by investors’ indecisive mindset, it said.
It noted that during the mid-week optimistic news like $250m loan from ADB for Bangladesh capital market reforms and MoU signed between India and Bangladesh securities regulators brought some positivities to the market.
“These pushed the broad index beyond 4,600-mark, a psychological level, several times at intra-day sessions of the past week,” IDLC added.