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A good week of market recovery

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The buying frenzy allowed the market to recover well over the week

TBS Report

08 January 2022, 21:25

Last modification: 08 January 2022, 21:32

Clients buy and sell stocks electronically at Anwar Securities, a member of the Dhaka Stock Exchange. Photo: Bloomberg.

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Clients buy and sell stocks electronically at Anwar Securities, a member of the Dhaka Stock Exchange. Photo: Bloomberg.

The first week of the New Year was dominated by the bulls as they found plenty of stocks to buy after a correction of several weeks.

The buying frenzy allowed the market to recover well over the week.

The Dhaka Stock Exchange (DSE) stock indexes saw a sharp rise during the week as institutional investors likely took a stand amid favorable macroeconomic updates, positive expectations for corporate earnings and dividends. that close in December and show signs of an improving relationship between the capital market and money market regulators, writes EBL Securities in its market commentary.

DSEX, the main index of the Dhaka Stock Exchange, rose 230.79 points or 3.4% during the week to close at 6,987.

After a 2.5-month market correction that took the DSEX below 6,650 in late December from 7,410 in mid-October, renewed optimism has increased trade participation for almost all types of investors. and the average daily DSE turnover increased 56% to Tk1,298 crore in the week.

Investors were mainly active in various industries, pharmaceuticals, chemicals and fuels, with the three contributing more than a third of DSE’s weekly turnover.

Most sectors performed positively, of which cement and service each gained the maximum of more than 10%, while the market capitalization of the fuels and power sector increased by 7.2%.

Paper and printing suffered the maximum correction of 8.4%, followed by jute sectors down 2.9% and general insurance sectors 1.7% in their respective market capitalization.

As buying appetite was dominant in non-selective stocks, the blue-chip DS30 index and the DSES Sharia index comparatively underperformed the broad DSEX index.

In the DSE, 286 scrips rose during the week, while 86 fell and the price of 10 was unchanged while 5 scrips were not traded.

DSE’s total market cap increased 2.92% to 5.58 lakh crore during 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 main winning stocks of the week.