Stocks close higher

FE Report Dhaka stocks closed higher Tuesday, a day after moderate price correction as investors' went for bargain hunting for banking stocks following the news of healthy half-yearly financial report of banks. The benchmark DSE General Index (DGEN), main gauge of the market went up by 40.81 points or 0.66 per cent to close at 6,165.26. The broader All Shares Price Index (DSI) rose 33.33 points or 0.65 per cent and closed to 5,132.85. The DSE-20 index comprising blue-chip shares also gained 48.47 points or 1.18 per cent to 4,137.32. Market was slow during the first 90 minutes of trading as investors were quite cautious about taking fresh entry after previous day's price correction. However, positive movement in banking sector which persisted throughout the day kept the index boosted the market confidence, said a merchant banker. Most of the private banks already revealed their half-yearly financial report and higher profit margin against expected level. Banking sector dominated on the day with a gain of 1.53 per cent and contributed 35 per cent of the day's total turnover value. Among top ten most traded shares six were banks and three banks emerged the top gainers list. Out of 30 banks in the sector, only AB Bank lost while 29 banks advanced. Mr Yawer Sayeed, managing director of AIMS of Bangladesh said rally in banking stocks kept the tempo. "The investors' bargain hunting for banking stocks expecting further hike of its share prices as the banks made hefty profit in first half," said Mr Sayeed. He said, if the government increases supply side, the market will be stable gradually. A press conference of the National Board of Revenue (NBR) regarding investment of undisclosed money in share market during the trading hour also made mixed reaction among the investors, said a stock broker. The National Board of Revenue (NBR) held a press conference Tuesday and said undisclosed money which will be invested in the share markets cannot be withdrawn before June 2013. However, the undisclosed money owners can draw the profit from it. The gainers took strong lead over the losers as out of the 257 issues traded, 175 advanced, 68 declined and 14 remained unchanged.