The benchmark index of the Dhaka Stock Exchange (DSE) extended its rally on Thursday amid a rise in investor confidence about the market.
Investors are optimistic that the economy will gradually overcome the prevailing challenges that are keeping the market from flourishing, said EBL Securities.
The DSEX, the broad index of the DSE, crossed the 6,300 mark after nearly four months, rising by 16.4 points to settle at 6,302 points.
The market remained upbeat throughout the session as optimistic investors continued their dominance on the trading floor and took positions in anticipation of quick gains.
LafargeHolcim Bangladesh Limited, Bangladesh Shipping Corporation, Unique Hotel & Resorts PLC, JMI Hospital Requisite Manufacturing Limited, Genex Infosys Limited, Bashundhara Paper Mills Limited, Shahjalal Islami Bank PLC., Square Pharmaceuticals , Green Delta Insurance Ltd. and Al-Arafah Islami Bank PLC. jointly accounted for three fourth of the day's index rise.
Investors were in fear of political instability but the tension is fading away after the election, said Md. Shakil Rizvi, managing director of Shakil Rizvi Stock Limited.
Of the 355 issues traded, 60 closed lower, 117 higher and 178 issues remained unchanged on the DSE trading floor.
The market has been bearish since the floor price was imposed more than a year ago, with some periodic upward movements that failed to sustain amid a confidence crisis.
Analysts say the prevailing floor price discourages investors, including the institutional ones, to put money in stocks. Uncertain economic outlook may be another reason as to why fresh investments are not coming in.
That compelled investors to focus on short-term bets, with their confidence in the market almost exhausted.
Turnover, a crucial indicator of the market, observed a significant increase of 48.1 per cent to Tk 7.5 billion on Thursday, increased from Tk 5.1 billion in the previous session.
Engineering (12.6%) issues brought the highest turnover, followed by General Insurance (10.1%) and IT (9.8%) stocks.
Almost all the sectors displayed positive returns, out of which IT 3.1 per cent, travel 2.7 per cent and paper 2.4 per cent.
The sectors that experiences a decline in market value are jute (-0.7 per cent), mutual funds (-0.7 per cent) and the financial institutions (-0.2 per cent).
The Chittagong Stock Exchange (CSE) ended higher, with the CSE All Share Price Index (CASPI) gaining 38.4 points to settle at 18665 and the Selective Categories Index (CSCX) shedding 22.2 points to close at 11162.
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