Stocks returned to positive territory on Tuesday, snapping a seven-day losing streak, as investors showed buying appetite for fundamentally sound stocks at low price points.
The DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled 32.96 points or 0.64 per cent higher at 5,124 on Tuesday after hitting a 30-month low on Monday.
The index wiped out a total of 330 points or 6.08 per cent in 10 trading sessions after the budget for this fiscal year (FY), 2019-20, was passed.
Market analysts said lucratively priced fundamentally sound stocks attracted bargain hunters as their prices came down to a significant low level.
Two other indices also ended higher. The DS30 index, comprising blue chips, gained 10.96 points to close at 1,829 while the DSE Shariah Index added 8.92 points to settle at 1,175.
Turnover, another important indicator of the market, hit a two-month low at Tk 2.71 billion, which was 11 per cent lower than the previous day's turnover of Tk 3.06 billion.
The market ended in the green as investors opted to buy fundamentally sound stocks, commented the UCB Capital Management.
It also noted that most of the investors, however, remained cautious as reflected in low trading activities.
The International Leasing Securities said the investors took position on different stocks, especially on telecoms, food, bank and financial institution sectors, at the lucrative price level, pushing the index 33 points higher.
After steep correction in the past few days, the telecommunications sector posted the highest gain of 1.2 per cent, followed by engineering (0.80 per cent), banking with (0.70 per cent), financial institution (0.60 per cent) and textile (0.40 per cent).
The gainers took a strong lead over the losers, as out of 352 issues traded, 222 advanced, 94 declined and 36 issues remained unchanged on the DSE trading floor.
Sea Pearl Beach Resorts, which made trading debut on Tuesday, topped the turnover chart, with 5.01 million shares worth Tk 154 million changing hands.
Its share price also jumped 261 per cent from its issue price of Tk 10 each to close at Tk 36.10 each on the DSE.
The other turnover leaders were Fortune Shoes, BRAC Bank, Bangladesh Shipping Corporation and Sinobangla Industries.
A total of 93,450 trades were executed in the day's trading session with trading volume of 96.28 million securities.
The market capitalisation of the DSE also rose to Tk 3,812 billion, up from Tk 3,787 billion in the previous session.
SEML FBLSL Growth Fund was the day's best performer, posting a gain of 9.95 cent while First Finance was the worst loser, shedding 10 per cent.
The port city bourse, Chittagong Stock Exchange, also ended higher with its CSE All Share Price Index - CASPI - advancing 82 points to settle at 15,702 and the Selective Categories Index - CSCX - gaining 49 points to finish at 9,537.
Here too, the gainers beat losers, as 152 issues closed higher, 89 lower and 27 remained unchanged on the CSE trading floor.
The port city bourse traded 6.89 million shares and mutual fund units worth Tk 164 million in turnover.
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