The first week of the new year was dominated by the bulls as they found many stocks within buying range after weeks-long correction.
Buying sprees helped a good recovery of the market over the week.
Equity indices of the Dhaka Stock Exchange (DSE) witnessed major surge over the week as institutional investors were likely to have been taking position amid the favorable macroeconomic updates, positive earning & dividend expectation from the December-closing companies, and the signs for an improving relationship between the capital market and money market regulators, EBL Securities wrote in their market commentary.
DSEX, the prime index of the Dhaka bourse, increased by 230.79 points or 3.4% over the week to close at 6,987.
After a 2.5 month-long market correction that had dragged the DSEX to below 6,650 at the end of December from 7,410 in the mid-October, the renewed optimism increased trading participation of almost all types of investors and average daily turnover in the DSE increased by 56% to Tk1,298 crore in the week.
Investors were mostly active in miscellaneous, pharmaceuticals-chemicals, fuel-power sectors as the three contributed to over one-third of the weekly turnover in the DSE.
Most sectors witnessed positive performance out of which cement and service each gained the maximum of over 10%, while fuel and power sector's market capitalization increased by 7.2%.
Paper and printing suffered the maximum 8.4% correction, followed by jute sectors 2.9% decline and general insurance sectors 1.7% decline in their respective market capitalization.
Since the buying appetite was dominant in non-selective stocks, blue-chip index DS30 and Shariah index DSES comparatively underperformed the broad index DSEX.
In the DSE 286 scrips advanced in the week, while 86 declined and price of 10 remained unchanged while 5 scrips had no trade.
DSE's total market capitalization increased by 2.92% to Tk5.58 lakh crore in the week.
Shipping Corporation, Lovello, Fareast Islami Life Insurance, Western Marine Shipyard, S Alam Cold Rolled Steel, Fortune Shoes, Bashundhara Paper, eGeneration, Coppertech, Power Grid Company were the top gaining stocks of the week.