Business Desk :
Stocks gained for the seventh consecutive week, with the benchmark index hitting a 10-month high, as buoyant investors continued to snap up fundamenatlly strong shares riding on high hopes.
The buying spree persisted throughout the week despite the lingering uncertainty over the resolution of US tariff-related issues.
Market analysts said investors’ sentiment remained resilient, bolstered by improving macroeconomic indicators, including a drop in inflation and the strengthening of the local currency against the US dollar.
Moreover, as the yield rates on government securities are showing a declining trend over the past few weeks, funds are being diverted to the equity market from the money market.
The interest rate of 10-year tenure treasury bonds saw a sharp drop of 187 basis points last week to 10.48 per cent, which was close to 13 per cent just a few months ago.
Besides, lowering the reverse repo rate by 50 basis points last week and growing expectations of an imminent policy rate cut helped boost the investor confidence.
As the interest rate is falling, high-net-worth investors are parking their funds into lucrative stocks, said a leading stockbroker.
Fundamentally strong and oversold stocks remained investors’ focus, driven by attractive valuations, leading to the highest single-week gain until now this year.
