Stocks extended rally for the second straight session on Sunday as investors showed their buying interest on selective large-cap issues amid reduced trading time due to holy Ramadan.
The market started on an upbeat note and the positive trend sustained until the end of the session amid modest volatility in the mid-session.
DSEX, the prime index of the Dhaka Stock Exchange, went up by 14.08 points or 0.20 per cent to settle at 6,771. DSEX added over 18 points in the past two consecutive sessions.
Market insiders said the investors put bets on selective large-cap stocks as the securities regulator is trying to boost market liquidity through collaboration with the market intermediaries.
The Bangladesh Securities and Exchange Commission has taken a number of initiatives to boost the market sentiment.
The stock market regulator held a meeting with leaders of three associations of market intermediaries last week. The association leaders assured of injecting fresh funds in the market.
The DSE also started to hold meetings with the country's large conglomerates separately to encourage them to be listed on the country's stock market.
"The equity indices ended higher as the optimistic investors are showing buying interest in lucrative issues after regulatory moves," said EBL Securities.
Large-cap five stocks such as LafargeHolcim, Robi, Walton, British American Tobacco and Beacon Pharma jointly added over 12 points to DSEX, according to amarstock.com, market data analyst.
Many investors, however, remained concerned about ongoing macroeconomic trends such as inflationary pressure, rising deposit rates and private sector credit growth rates, said a merchant banker.
Two other indices also ended marginally higher. The DSE 30 Index, comprising blue chips, rose 13.96 points to finish at 2,487 and the DSE Shariah Index (DSES) gained 2.82 points to close at 1,470.
Turnover, the crucial indicator of the market, however, fell to Tk 8.36 billion, which was 25 per cent down from the previous day's tally of Tk 11.16 billion, amid the reduced trading time by 30 minutes.
The investors mostly focused on the financial institution stocks due to December-end declaration, according to International Leasing Securities.
"Some of the investors remained cautious and reduced their exposure fearing the price hike of necessary commodities in the holy Ramadan," said the stockbroker.
Major sectors posted gains with non-bank financial institutions seeing the highest gain of 2.90 per cent, followed by cement with 2.90 per cent, food 0.60 per cent, telecom 0.50 per cent and banking 0.20 per cent.
On the other hand, general insurance, power, miscellaneous and life insurance lost 1.50 per cent, 0.50 per cent, 0.40 per cent and 0.30 per cent respectively.
Losers, however, took a modest lead over the gainers as out of 379 issues traded, 195 declined, 129 advanced and 55 issues remained unchanged on the DSE trading floor.
IPDC Finance topped the turnover list with shares worth over Tk 579 million changing hands, followed by Provati Insurance, Beximco, Fortune Shoes and GSP Finance.
The newly listed JMI Hospital Requisite Manufacturing was the top gainer, posting a 10 per cent gain, while Linde Bangladesh was the day's worst loser, losing 1.99 per cent, following its price adjustment after record date.
The Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index - CASPI -gaining 76 points to settle at 19,825 and the Selective Categories Index - CSCX -rising 45 points to close at 11,893.
Of the issues traded, 124 advanced, 119 declined and 36 issues remained unchanged on the CSE.
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