Stocks extended the gaining streak on Wednesday as investors continued their buying spree, particularly financial stocks, amid budget expectations.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose nearly 52 points or 0.97 per cent to finish the day at 5,398 points.
Analysts said the investors went for buying shares in anticipation of a cut in corporate tax of the listed banks and financial institutions for the upcoming fiscal year.
According to media reports, the government might cut the corporate tax of the listed banks and non-banking financial institutions in fiscal year (FY) 2018-19.
"The investors responded positively to the news of possible corporate tax cut on listed banks, non-bank financial institutions," said an analyst at a leading brokerage firm.
Accordingly, the banking sector posted the highest gain of 3.10 per cent, with prices of 29 banks closed green, out of 30 listed banks.
Power, non-bank financial institutions and engineering sectors also gained 1.71 per cent, 0.75 per cent and 0.70 per cent respectively.
On the other hand, pharmaceuticals, telecommunication and food sectors closed in the red, losing 0.38 per cent, 0.20 per cent and 0.10 per cent respectively.
Following the previous day's upward trend, the market opened higher and the positive trend continued till end of the session.
Finally, DSEX ended nearly 52 points higher while CSE All Share Price Index (CASPI) gained 139 points at closing.
The two other indices also closed higher. The DS30 index, comprising blue chips, advanced 13 points to finish at 1,993 and the DSE Shariah Index (DSES) rose 2.85 points to close at 1,246 points.
"The investors' mainly took position on financial stocks riding on the news that the government may cut corporate tax rate of listed banks and non-banking financial institutions for FY 2018-19," commented International Leasing Securities.
The market activities also rose and the total turnover amounted to Tk 4.56 billion, which was 19 per cent higher than the previous day's Tk 3.82 billion.
Of the traded issues, 177 advanced, 104 declined and 55 issues remained unchanged on the DSE trading floor.
Alif Industries topped the day's turnover chart with shares worth Tk 254 million changing hands, closely followed by Beximco, Khulna Power Company, Monno Ceramic Industries and Berger Paints.
BD Autocars continued to dominate the gainers chart for the three straight sessions, posting a gain of 9.98 per cent.
Intraco Refueling Station was the day's worst loser, plunging by 6.32 per cent.
The port city's bourse, Chittagong Stock Exchange (CSE) also closed higher with CSE All Share Price Index - CASPI - advancing 139 points to finish at 16,622 points.
The Selective Categories Index - CSCX - also gained 86 points to settle at 10,056 points.
Gainers beat losers as 118 issues closed higher, 68 lower and 36 remained unchanged on the CSE.
The port city bourse traded 5.08 million shares and mutual fund units worth more than Tk 179 million in turnover.
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