The benchmark index of the Dhaka Stock Exchange (DSE) rose above the 'psychological' level of 6,000 points again on Wednesday, as investors renewed their appetite for financial stocks in late-hour trading.
Having swung between the red and green zones several times, the DSEX closed the session 25.67 points or 0.42 per cent higher at 6,019. It is the highest level of DSEX in more than three years since February 15, 2018 when the DSEX ended at 6,050.
Three days ago, on Sunday, the index crossed the historic 6,000-point for the first time in more than three years, but failed to sustain that level in the next two days on profit booking.
The market capitalisation of the DSE also hit a fresh all-time high at Tk 5,052 billion on Wednesday, surpassing the previous day's record high of Tk 5,041 billion.
Market experts said the prime index surpassed the 6,000 level again as investors injected fresh funds into financial stocks amid budgetary expectations.
Finance Minister AHM Mustafa Kamal is set to unveil the national budget for Fiscal Year (FY) 2021-2022 today (Thursday).
Lower returns on the money market, limited scope for investment in other instruments and earnings surprises of listed companies contributed to the recent bullish trend in the stock market, said a merchant banker.
He noted that the institutional investors and high-net-worth individuals were putting fresh funds on stocks eyeing on budget incentives.
The corporate tax rates for both listed and non-listed companies are expected to be slashed by 2.50 percentage points in the next budget while the existing scope to invest undisclosed money in the capital market may remain in place, he added.
Two other sub-indices also edged higher -- the DSE 30 Index, comprising blue chips, advanced 1.69 points to finish at 2,195 and the DSE Shariah Index (DSES) gained 0.44 point to close at 1,284.
Turnover, a crucial indicator of the market, clocked in at Tk 22.87 billion, on the country's premier bourse, up 20 per cent from the previous day's mark of Tk 19.03 billion.
The investors continued their buoyancy on financial sector stocks riding on their latest quarterly earnings disclosures, commented International Leasing Securities.
The life insurance sector generated the highest gain of 2.40 per cent, followed by non-bank financial institutions (2.10 per cent), banking (0.80 per cent) and general insurance (0.80 per cent).
On the other hand, engineering, power, telecoms, food and cement sectors witnessed moderate corrections.
Gainers took a modest lead over the losers, as out of 367 issues traded, 164 advanced, 146 declined and 57 remained unchanged on the DSE trading floor.
Beximco -- the flagship company of Beximco Group -- continued to dominate the turnover chart with shares worth about Tk 846 million changing hands, followed by Dutch-Bangla Bank (Tk 696 million), LankaBangla Finance (Tk 578 million), Global Insurance (Tk 490 million) and Rupali Insurance (Tk 411 million).
Global Insurance was the day's top gainer, posting 18.36 per cent gain following its corporate declaration while Social Islami Bank was the worst loser, shedding 7.53 per cent following its price adjustment after record date.
The Chittagong Stock Exchange (CSE) also ended marginally higher with the CSE All Share Price Index - CASPI - gaining 66 points to settle at 17,442 and the Selective Categories Index - CSCX rising 40 points to close at 10,513.
Of the issues traded, 138 advanced, 121 declined and 41 issues remained unchanged on the CSE.
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