The market rebounded strongly on Tuesday, snapping a two-day losing streak, as bargain hunters put fresh bets on financial sector stocks.
The market witnessed choppy trading in early hours before closing higher led by banking, non-bank financial institutions and insurance sector stocks.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 47.25 points or 0.79 per cent to settle at 6,023, after losing 78 points in the past two consecutive sessions.
Market operators said the prime index of the major bourse crossed the 'psychological' threshold of 6,000-mark after single-day break as optimistic showed appetite on financial stocks.
The investors put fresh bets on financial sector issues riding on positive impact of the proposed budget in developing the capital market, commented International Leasing Securities.
The stockbroker noted that the investors' enthusiasm in insurance, banking and financial institution sectors helped the DSE core index to cross 6,000-mark again.
According to EBL Securities, confidence of investors in the stock market is expected to remain high as investors deemed the budgetary impact on the stock market to be positive in selective sector-wise issues.
Finance Minister AHM Mustafa Kamal placed a record Tk 6.03 trillion national budget for the Fiscal Year (FY) 2021-2022 before parliament on Thursday.
The budget proposed to cut corporate tax rate for the listed firms by 2.5 percentage points to 22.5 per cent for the upcoming fiscal year. But the ongoing facility to invest undisclosed money in the capital market is not continued.
Two other indices also edged higher with the DSE 30 Index, comprising blue chips, advanced 0.86 points to finish at 2,195 and the DSE Shariah Index (DSES) gained 1.12 points to close at 1,290.
Turnover, a crucial indicator of the market, remained almost same and amounted to Tk 20.65 billion on the country's premier bourse which was Tk 20.83 billion in the previous day.
Turnover remained high as a section of investors are taking part in the stock market with fresh funds to enjoy the existing tax benefits ahead of closure the current fiscal year, said a leading broker.
The daily average turnover on the DSE above Tk 21 billion in the last 10 consecutive sessions as the enthusiastic investors were active on the trading floor, he said.
The investors' activity was mostly focused on general insurance, grabbing 26 per cent of the day's total transaction, followed by miscellaneous with 11 per cent and textile 10.98 per cent.
The general insurance sector generated the highest return, gaining 7.43 per cent, followed by life insurance with 3.60 per cent, banking 1.54 per cent and financial institutions 1.25 per cent.
On the other hand, cement, food, pharma and telecom sectors saw moderate correction, losing 1.48 per cent, 0.40 per cent, 0.26 per cent and 0.30 per cent respectively.
Gainers took a modest lead over the losers, as out of 369 issues traded, 181 advanced, 145 declined and 43 issues remained unchanged on the DSE trading floor.
Beximco - the flagship company of Beximco Group- continued to dominate the turnover chart with shares worth Tk 1.54 billion changing hands, followed by Pioneer Insurance (Tk 762 million), Fortune Shoes (Tk 543 million), LankaBangla Finance (Tk 483 million) and National Feed Mills (Tk 424 million).
Islamic Finance & Investment was the day's top gainer hitting the upper limit circuit breaker with 10 per cent gain, while MI Cement Factory was the worst loser, losing 4.28 per cent.
A total number of 287,121 trades were executed in the day's trading session with a trading volume of 620.46 million shares and mutual fund units.
The market-cap of DSE also rose to Tk 5,087 billion on Tuesday, up from Tk 5,065 billion in the previous session.
The Chittagong Stock Exchange (CSE) also rebounded with the CSE All Share Price Index - CASPI -rising 114 points to settle at 17,431 and the Selective Categories Index - CSCX gaining 68 points to close at 10,504.
Of the issues traded, 148 advanced, 111 declined and 41 issues remained unchanged on the CSE.
The port city's bourse traded 24.71 million shares and mutual fund units with turnover value of Tk 858 million.
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