Staff Correspondent

The benchmark index of the capital markets was back to positive territory in the last week (ended session on Thursday) as bargain hunters showed buying interest in the market.

After undergoing consecutive corrections in the previous week, while somewhat reinstated optimism surrounding the ICB's receipt of the Tk3000 crore sovereign-guaranteed loans aided significantly to the market's recovery.

Market analysts said the market recovery was largely supported by the state-run Investment Corporation of Bangladesh (ICB) as it began injecting funds into the market after receiving capital last week.
However, cautious investors are observant of the sustainability of the market's short-lived upbeat vibe in the absence of any major trigger for the market to bounce back from its current volatile state.

Of the companies traded on the DSE over the past week, 172 were on the price increase list. On the contrary, 168 companies saw their prices decrease. And 57 companies remained unchanged. That is, there are almost an equal number of companies on the price increase and decrease lists. However, the market capitalization of large-cap companies increased as their share prices increased.

DSEX, the broad index of the Dhaka Stock Exchange, gained 116.1 points, or 2.3 percent, to settle at 5,221.57 points. Investor participation in the market also increased by 15.8 percent to Tk373.1 crore as compared to Tk322.2 crore in the previous week.

The blue-chip DS30 index, a group of 30 prominent companies, rose 56 points to 1,938.29 points while the DSES index, which represents Shariah-based companies, gained 27 points to close at 1,167.35 points.
Investors were mostly active in Pharma sector 24.5 percent, followed by Textile sector 11.6 percent and Bank sector (9.3 percent. All these sectors, except financial institutions (-1.0 percent) and mutual funds 0.4 percent, ended in green with telecom sector 4.7 percent being the highest gainer.

The Chittagong Stock Exchange also experienced gains, mirroring the DSE's positive trend.

The central bank disbursed the fund at an interest rate of 4 percent for a period of 18 months after the government had provided sovereign guarantee against the fund to help the ailing market.

"We have already started injecting the fund into the market, particularly in good stocks," Md Abul Hossain, managing director of the ICB, said in this regard.
As a result, the market opened with a dominant buy pressure and three trading days of the week ended higher, out of four. The market remained closed on Monday on the occasion of Victory Day.

The Chittagong Stock Exchange (CSE) also ended higher, with CSE All Share Price Index (CASPI) rising 218 points to settle at 14,522 and its Selective Categories Index (CSCX) soaring 141 points to 8,843.

The port-city investors traded 1,41 crore shares and mutual fund units with a turnover value of Tk 45.9 crore in the last week.

Dr. M. Mashrur Reaz, Chairman and CEO of research organization Policy Exchange, Bangladesh (PEB) told UNB that macroeconomics is showing a recovery trend in the country.

“In consequence of macro sector recovery, investors’ confidence is showing return in the investment in the capital market. ICB’s initiative of injecting Tk3000 crore in the capital market also influences stunning sustainability in the market,” he noted.