Stocks extended their rally for the fourth straight session on Monday, with turnover crossing Tk 10 billion after three months, as buoyant investors kept their buying spree in lucrative shares.
Investor sentiment remained enthusiastic as institutional investors were putting fresh bets on stocks that posted higher quarterly earnings, market experts said.
In such a favourable environment, daily turnover reached Tk 10.96 billion, climbing further by 34 per cent over the previous day. It was the biggest single-day turnover since February 14.
The regulatory intervention narrowing the scope of individual stocks' decline to 3 per cent a day from 10 per cent was also believed to have helped the prime index to go upward.
Substantial price surge of some large-cap stocks pulled the Dhaka Stock Exchange (DSE) key index almost by 35 points or 0.61 per cent to 5,727, the highest in three weeks.
The market rally was largely supported by high market liquidity while pharmaceuticals, textile and heavyweight banking sectors captured half of the day's market turnover.
The prime index of the DSE gained 158 points in the past four trading days while market-value surged by Tk 112 billion during the time.
Beximco Pharma, Kohinoor Chemicals, National Bank, Renata, and Saif Powertec were top positive index contributors. They jointly accounted for 15-point rise of the key index.
Opportunistic investors kept their buying spree in stocks deemed lucrative after major price corrections, said Md Sajedul Islam, managing director of Shyamol Equity Management Ltd.
"A section of investors became active after reappointment of the securities regulator chairman while favorable earnings disclosure prompted them to bet on lucrative stocks," said Mr Islam, also former senior vice-president of DSE Brokers Association.
Professor Shibli Rubayat-Ul Islam was reappointed as chairman of the BSEC for another four-year term last week.
The blue chip index DS30, a group of 30 prominent companies, advanced 13 points to 2046 while the DSES Index, which represents Shariah-based companies, gained almost 11 points to 1261.
"Buyers continued their dominance, leading the majority of shares to extend their price appreciation since investor sentiment has somewhat rebounded from the prolonged depressed vibe," said EBL Securities.
Investors were mostly active in the pharmaceutical sector, which accounted for 22 per cent of the day's total turnover, followed by textile (14 per cent) and banking (13 per cent).
Most of the sectors posted gains, with non-bank financial stocks enjoying the highest gain of 6.2 per cent driven by the Investment Corporation of Bangladesh that surged almost 10 per cent.
Majority of the stocks saw price surge, as out of the 396 issues traded, 252 closed higher, 86 ended lower and 58 remained unchanged on the DSE trading floor.
Orion Infusions became the most-traded stocks with shares worth Tk 454 million changing hands, followed by Asiatic Laboratories, Lovello Ice-Cream, Far East Knitting, and Fortune Shoes.
Esquire Knit Composite was the top gainer, rising 10 per cent while Shyampur Sugar Mills was the worst loser, shedding 3 percent.
The Chittagong Stock Exchange (CSE) also ended higher with its All Share Price Index (CASPI) rising 130 points to 16,362 and the Selective Categories Index (CSCX) gaining 77 points to 9,850.
The port city bourse traded 4.76 million shares and mutual fund units, leading to a turnover of Tk 128 million.
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