Stocks rebounded strongly Sunday with core index of the Dhaka bourse soared 2.15 per cent, the biggest single-day gain in 21 months, powered by investors' buying spree on large-cap stocks.
Dealers said the market registered the highest single-day gain since May 3, 2016, driven by rally in banking, non-bank financial institutions and telecommunication sector issues.
The market started on a flying note and remained vibrant throughout the session amid strong buying pressure from the investors, including global fund managers.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled at 6,094, after soaring 128 points or 2.15 per cent over the previous session.
It was the highest single-day gain in the past 21 months since May 3, 2016, when DSEX surged 2.42 per cent.
"The investors became optimistic as the country's political tension eased to some extent and the premier bourse approved the proposal of Chinese consortium to be a strategic partner of the country's premier bourse," Khairul Bashar Abu Taher Mohammed, the chief executive officer of MTB Capital, told the FE.
Many fundamentally strong issues became lucrative which also encouraged many investors to take position, said Mr Bashar, also secretary general of the Bangladesh Merchant Bankers Association (BMBA).
Mr Bashar noted that the investors might have reacted positively and institutional investors have started to exhibit their active participation ahead of dividend declarations.
The two other indices also ended higher. The DS30 index, comprising blue chips, advanced 30 points or 1.36 per cent to finish at 2,256. The DSE Shariah Index (DSES) also rose 22 points or 1.64 per cent to close at 1,412.
Bullish sentiment was also reflected on the trading activities as total turnover rose to Tk 4.55 billion on the DSE, which was 52 per cent higher than the previous session's one and a half year's lowest turnover of Tk 3.0 billion.
According to International Leasing Securities, optimistic investors showed their buying appetite on sector-wise large-cap issues, especially on bank, engineering, financial institution, textile and telecom sectors' stocks.
The stockbroker noted that the investors' activities also surged as the bargain hunters took position on the lucrative price level in different stocks and injected fresh funds into the market.
All the large-cap sectors showed positive performance. Banking sector posted the highest gain of 3.07 per cent with 29 banks closed green, out of 30, followed by engineering with 2.81 per cent and financial institutions 1.78 per cent.
Telecommunication, power, pharmaceuticals and food & allied sectors also gained 1.66 per cent, 1.04 per cent and 0.86 per cent respectively.
Share prices of 88 per cent traded issues closed higher as out of 334 issues traded, 2293 closed higher, 27 closed red and 14 issues remained unchanged on the DSE trading floor.
LankaBangla Finance topped the day's turnover chart with 5.13 million shares of Tk 220 million changing hands, followed by Anwar Galvanizing, Square Pharmaceuticals, Monno Ceramic Industries and Mercantile Bank.
Miracle Industries was the day's best performer, posting a gain of 9.94 per cent while Asia Insurance was the day's worst loser, plunging by 5.88 per cent.
CSE also ended higher with CSE All Share Price Index - CAPSI-advancing 395 points to settle at 18,824 and Selective Categories Index - CSCX -rising 235 points to finish at 11,364.
Gainers beat losers as 223 issues closed higher, 14 lower and 9 remained unchanged on the CSE.
The port city bourse traded 9.11 million shares and mutual fund units worth more than Tk 217 million in turnover.
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