Stocks bounced back strongly on Tuesday from heavy losses in the past two sessions, as bargain hunters started picking sector-specific issues.
DSEX, the prime index of Dhaka Stock Exchange (DSE), settled 111 points or 2.24 per cent higher at 5,077, after losing 164 points in the last two trading days.
Market analysts said smart investors showed their appetite for sector-specific issues at the lucrative price level after recent sharp decline.
Meanwhile, the DSE requested all stock brokers to ensure legal authorisation when it comes to placing of any sale order. Such a move slowed the selling spree, brokers said.
"All stock brokers are requested to ensure due authorisation from their clients, like sales order and CDBL Pay-In form, before placing any sale order into the system," according to the DSE disclosure.
Following the previous three days' fall of 167 points, the market opened on a flying note on Tuesday and remained vibrant throughout the session amid strong buying pressure from the investors, including institutional investors.
The two other indices also ended higher. The DS30 index, comprising blue chips, advanced 38.47 points or 2.16 per cent to finish at 1,814 and the DSES (Shariah) index rose 25.56 points or 2.24 per cent to settle at 1,164.
Turnover, another important indicator of the market, however, fell to Tk 3.17 billion, which was 32 per cent lower than the previous day's turnover of Tk 4.64 billion.
According to the International Leasing Securities, optimistic investors showed their appetite for all the sectors which helped the index rise 111 points, the highest single session gain in more than six months since January 08, 2019.
A total of 105,153 trades were executed in the day's trading session, with trading volume standing at 127.72 million shares and mutual fund units.
The market capitalisation of the DSE increased to Tk 3,792 billion on Tuesday from Tk 3,729 billion in the previous day.
Engineering sector posted the highest gain of 3.49 per cent, followed by non-bank financial institutions (3.32 per cent), food (2.99 per cent), pharmaceuticals (1.75 per cent), banking (1.50 per cent), power (1.44 per cent), and telecommunications (0.36 per cent).
The gainers took a strong lead over the losers, as out of 351 issues traded, 327 closed higher, 15 ended lower and 09 issues remained unchanged on the DSE trading floor.
Fortune Shoes topped the turnover chart for the fifth straight session with 3.43 million shares worth Tk 133 million changing hands.
The other turnover leaders were Sinobangla Industries, Square Pharmaceuticals, Doreen Power and United Power.
Aziz Pipes was the day's best performer, posting a gain of 9.96 per cent while Progressive Life Insurance was the day's worst loser, shedding 9.73 per cent.
The port city bourse Chittagong Stock Exchange also ended higher with the CSE All Share Price Index - CASPI - soaring 298 points to settle at 15,513 while the Selective Categories Index - CSCX - rising 177 points to finish at 9,434.
Here too, the gainers beat the losers as 233 issues ended higher, 38 lower and 13 remained unchanged.
The port city bourse traded 5.80 million shares and mutual fund units worth nearly Tk 124 million in turnover.
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