Stocks ticked higher on Tuesday, remaining flat in the previous day, powered by investors' buying spree, particularly on financial issues.
Market insiders said the institutional investors were active on sector specific stocks, especially banking and financial institutions while some rebalanced their portfolios based on latest quarterly earnings results.
"The retail investors reacted positively as institutional investors, including state-run Investment Corporation of Bangladesh started to exhibit their active participation in the market," said a leading broker.
The market opened on positive note and the upward trend sustained till end of the session with no sign of reversal. Finally it ended more than 41 points higher.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled at 5,298, advancing 41.72 points or 0.79 per cent over the previous day.
According to LankaBangla Securities, the upward shift in the index was mainly driven by significant positive changes in financial stocks, pharmaceuticals and miscellaneous sectors.
Accordingly, the banking sector posted the highest gain of 1.76 per cent, followed by pharmaceuticals with 1.10 per cent, financial institutions 0.64 per cent and food 0.16 per cent.
Two other indices-the DS30 index and the DSE Shariah Index (DSES)-also closed higher.
The DS30 index, comprising blue chips, advanced 15.77 points to finish at 1,868 and the DSE Shariah Index rose 6.67 points to close at 1,221.
International Leasing Securities said the optimistic investors showed their buying interest in the large-cap sectors especially in bank, pharma and financial institution sectors riding on new hopes.
Turnover, another important indicator of the market, stood at Tk 7.17 billion, which was 11 per cent lower than the previous day's turnover of Tk 8.03 billion.
The textile sector dominated the turnover chart, grabbing 19 per cent of the day's total turnover, followed by power with 16 per cent and pharmaceuticals 14 per cent.
"The market ended higher as investors were active on sector specific stocks based on latest earnings disclosures," commented EBL Securities, in its regular market analysis.
However, the power posted the highest correction of 1.45 per cent, followed by telecommunication 0.84 per cent and engineering 0.07 per cent.
A total number of 162,624 trades were executed in the day's trading session with trading volume of 168.02 million securities.
The market capitalisation of the DSE stood at Tk 3,823 billion on the day which was Tk 3,816 billion in the previous day.
The gainers took a modest lead over the losers as out of 323 issues traded, 159 advanced, 124 declined and 40 issues remained unchanged on the DSE trading floor.
Khulna Power Company topped the DSE turnover chart with 6.73 million shares worth Tk 527 million changing hands.
The other turnover leaders were Brac Bank, United Power, Shepherd Industries and SK Trims Industries.
Desh Garment was also the day's best performer, posting a gain of 9.95 per cent while Golden Harvest Agro Industries was the worst loser, losing 10.71 per cent following its price adjustment after record date.
The port city bourse - the Chittagong Stock Exchange - also ended higher with its CSE All Share Price Index - CASPI -advancing 105 points to settle at 16,242 and the Selective Categories Index - CSCX -gaining 68 points to finish at 9,850.
The gainers beat losers as 116 issues closed higher, 97 ended lower and 28 remained unchanged on the CSE.
The port city bourse traded 9.78 million shares and mutual fund units worth more than Tk 271 million in turnover.
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