Dhaka stocks managed to stay positive for the second day in a row on Thursday as bargain hunters opted to take positions in beaten-down issues in anticipation of short-term gains.
Market analysts said that after a sharp correction in recent weeks, many stocks fell to a lucrative price level, which encouraged a section of investors to put fresh bets.
Moreover, rumors about a possibility that the revenue authority will finally not go ahead to impose capital gain tax instilled some confidence in jittery investors.
This was the last trading session before the Eid holidays. Trading on the bourses will remain closed for five days until June 18.
The market was upbeat throughout the session, with the benchmark index of the Dhaka Stock Exchange (DSE) rising finally more than 34 points or 0.68 per cent to settle at 5,117.
The DSEX recovered almost 48 points in the past two days after losing 168 points in three consecutive days following the placement of the FY25 budget in parliament.
The market recovery was largely supported by high market liquidity with turnover climbing 21 per cent on Thursday over the previous day to Tk 4.23 billion.
Pharmaceuticals, food and life insurance sectors captured more than half of the day's total turnover, as optimistic investors injected money.
The blue-chip DS30 index, a group of 30 prominent companies, gained more than 9 points to 1,821 while the DSES index, which represents Shariah-based companies, rose 7 points to 1,108.
"Buyers ended up on a slightly dominant side as a section of investors sought to take positions in particular stocks that had undergone significant corrections," said EBL Securities.
Beximco Pharma, Square Pharma, Beacon Pharma, Trust Bank, and BRAC Bank were major index pullers as they jointly accounted for more than 14 points rise of the key index.
"Opportunistic investors showed buying interest in stocks deemed lucrative following the recent price corrections," said Md Sajedul Islam, managing director of Shyamol Equity Management.
He, however, said investors were still fixated on short-term bets amid the prevailing volatility in the market.
Most of the sectors posted gains, with life insurance witnessing the highest rise of 3.3 per cent, backed by Rupali Life Insurance that surged more than 9 per cent alone. The life insurance sector was followed by general insurance, tannery, non-bank financial institutions and food.
A majority of the stocks saw price surge. Out of the 396 issues traded, 224 closed higher, 113 closed lower and 59 remained unchanged on the DSE trading floor.
Crystal Insurance became the most-traded stocks with shares worth Tk 229 million changing hands, followed by Beach Hatchery, Alif Insurance, and Rupali Life Insurance.
The Chittagong Stock Exchange (CSE), however, ended slightly lower with its All Share Price Index (CASPI) shedding 6 points to 14,547 and the Selective Categories Index (CSCX) losing 4 points to 8,748.
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