Stocks posted a sharp rise on Tuesday with rising turnover as investors showed their buying appetite on sector specific stocks.
Market insiders said positive support from institutional investors including state-run Investment Corporation of Bangladesh (ICB) helped the market to close higher.
A section of investors remained optimistic that the market would rise once ICB begins injecting Tk 15 billion (bond sales proceeds) and the stockbrokers Tk 947 million (proceeds of DSE share sales to a Chinese consortium) soon, said a leading broker.
He noted that earnings and corporate declarations of several companies on the day might have met investors' expectation and stimulated to rebalance portfolios.
The market started with an upward trend from the very beginning and the upward trend sustained till end of the session with no sign of reversal as investors were active in the undervalued stocks.
DSEX, the benchmark index of the Dhaka Stock Exchange, rose 52.56 points or 1.0 per cent, closing the day at 5,299.
"The upward shift in the index is mainly driven by significant positive changes in some of the large-cap sectors like textile, banking and financial institutions," commented LankaBangla Securities in its regular market analysis.
The two other indices-the DS30 index and the DSE Shariah Index (DSES)-also ended higher.
The DS30 index, comprising blue chips, advanced 16.36 points to finish at 1,876 and the DSE Shariah Index rose 7.33 points to close at 1,226.
Turnover, another important indicator of the market, crossed Tk 5.0 billion-mark and the total turnover amounted to Tk 5.52 billion, which was 25 per cent higher than the previous day's turnover of Tk 4.42 billion.
According to International Leasing Securities, trading activities increased and crossed Tk 5.50 billion after eleven sessions as the optimistic investors took position on lucrative price levels.
The textile sector dominated the turnover chart, grabbing 18 per cent of the day's total transaction, followed by power with 16 per cent and pharma 14 per cent.
The textile sector also posted the highest gain of 2.40 per cent, followed by banking with 1.50 per cent, financial institutions 1.29 per cent, engineering 1.14 per cent, pharmaceuticals 0.74 per cent and power 0.02 per cent.
Food and allied and telecommunication saw correction of 0.49 per cent and 0.48 per cent respectively.
Of the traded issues, 231 advanced, 73 declined and 34 securities closed unchanged on the premier bourse.
A total number of 132,061 trades were executed in the day's trading session on the DSE with trading volume of 148.54 million securities.
The market capitalisation of the DSE also rose to Tk 3,845 billion on the day which was Tk 3,826 billion in the previous session.
The port city bourse, the Chittagong Stock Exchange (CSE), also ended higher with its CSE All Share Price Index-CASPI-soaring 180 points to settle at 16,227 and the Selective Categories Index - CSCX -rising 110 points to finish at 9,839.
The gainers beat losers as 166 issues closed higher, 49 ended lower, with 25 issues remaining unchanged on the CSE.
The port city bourse traded 10.68 million shares and mutual fund units worth Tk 302 million in turnover.
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