Stocks gained for the third week as investors went for fresh investments amid a sense of calm in the political arena.
DSEX, the general index of the Dhaka Stock Exchange, closed the week at 4,519.35 points, after gaining 111.53 points or 2.53 percent.
Investors seem to be happy with the improved political situation, said LankaBangla Securities in its weekly market analysis.
“Market participants are probably expecting the new government to take necessary steps to make the economy more vibrant. The money market is very liquid with the call money rate hovering around 7.0 percent.”
In the first sign of economic stability, money market liquidity seems to rush into the equity market, the stockbroker said.
The cement sector rallied 7.0 percent last week with a 70 percent increase in turnover.
"If the economy really stabilises, construction and financial companies will perform better than they did in 2013," the stockbroker said.
In 2013, the cement industry was almost flat with no growth. As political situation has improved to some extent, many expect 2014 to be a stable year, it said.
The market has closed above an important psychological level of 4,500 points and the average daily turnover rose by 42.5 percent to Tk 651 crore, compared to that in the previous week.
This turnover hike is also indicating strength in market movement, LankaBangla added.
“The upcoming corporate declarations and the monetary policy statement of the central bank generated scrip and sector specific trading motivations,” IDLC Investments said in its analysis.
The gainers took a strong lead over the losers as out of 298 issues traded on the DSE floor, 216 advanced, 72 declined and 10 remained unchanged.
All the major sectors performed well except telecoms, which retraced 1.25 percent.
Non-bank financial institutions saw the highest gain of 4.72 percent, followed by pharma 3.69 percent, banks 3.24 percent and power 2.15 percent.
Appollo Ispat, from the engineering sector, saw the highest liquidity with 2.67 crore shares worth Tk 105 crore changing hands.
Pragati Life Insurance was the top gainer of the week, posting a rise of 28.67 percent, while Aramit Cement was the worst loser, slumping by 30.71 percent.