Stocks rebounded Tuesday, after single-day break, largely supported by Grameenphone, the largest market cap company shares.
Brokers said the market rose after previous day's correction largely supported by GP and Square Pharmaceuticals, the second largest market cap issue.
Share prices of GP, which accounted for more than 19 per cent of the country's premier bourse's total market cap, jumped 1.18 per cent or Tk 5.70 each to close at Tk 487.40.
The square Pharma's share price also ended 0.35 per cent higher to close at Tk 317.30 each on the day.
"Strong buying pressure on stocks mainly from Grameenphone and Square Pharmaceuticals issues jacked the index up as the largest and second largest market cap issues," said an analyst at a leading brokerage firm.
However, a section of investors remained cautious amid concern over ongoing liquidity crunch coupled with ambiguity over the Dhaka bourse's share sales to a strategic partner, said the analyst.
The market became negative on the first hour, then managed to become positive and continued the positive trend till the end with investor's buying spree.
Finally, the key index of the major bourse ended more than 12 points higher while CSE All Share Price Index (CASPI) rose 45 points at closing.
DSEX, the core index of the Dhaka Stock Exchange (DSE), settled at 5,848, gaining 12.47 points or 0.21 per cent over the previous session.
According to International Leasing Securities, the market witnessed choppy trading as both the bargain hunters and shaky investors were active in the session.
The stockbroker noted that the opportunist investors' buoyancy in telecom, engineering and cement sectors helped the prime index to close in green. However, some other investors opted to liquidate their holdings in bank and financial institution sectors as some recent crises have affected the banking sector.
"Trading activities has increased by 10 per cent over last session as some of the investors rebalance their portfolio ahead of quarterly earnings disclosures and year-end dividend declarations," the stockbroker said.
The two other indices also saw marginal gain. The DS30 index, comprising blue chips, advanced 3.50 points or 0.16 per cent to finish at 2,156. The DSE Shariah Index (DSES) gained 7.39 points or 0.54 per cent to close at 1,375.
The market activities crossed the 4.0 billion-mark and the total turnover on the DSE rose to Tk 4.26 billion, which was 10 per cent higher than the previous day's Tk 3.89 billion.
"Investors' sentiment regarding the market remained positive and buoyancy prevailed throughout the session," commented EBL Securities, in an analysis.
The stockbroker noted that the core index passed a positive session riding on stocks from telecommunication, engineering, and pharmaceuticals issues.
Major sectors showed mixed performance. Telecommunication posted the highest gain of 1.20 per cent riding on Grameenphone, followed by cement with 0.70 per cent, engineering 0.50 per cent, pharmaceuticals 0.20 per cent and fuel & power 0.10 per cent.
On the other hand, food & allied issues sustained the highest correction, losing 1.60 per cent, followed by banking and non-bank financial institutions, losing 0.10 per cent each.
CSE also ended marginally higher with its CSE All Share Price Index - CASPI -gaining 36 points to settle at 18,066 and selective Categories Index - CSCX -advancing 25 points to finish at 10,907.
Here too, the gainers beat the losers as 127 issues closed higher, 72 loser and 33 remained unchanged on the CSE.
The port city bourse traded 6.81 million shares and mutual fund units worth more than Tk 303 million in turnover.
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