Stocks started the year with a big jump on Sunday as the investors showed their buying appetite on major sectors amid high expectations in the New Year.
After passing a buoyant year in 2021, the market opened on a flying note and the upward trend continued until the end of the session with no sign of reversal.
Finally, DSEX, the prime index of Dhaka Stock Exchange (DSE), went up by 96.48 points or 1.42 per cent to settle at two-week highest level at 6,853.
In 2021, the country's capital market had a good year as the core index of the DSE posted an impressive 25 per cent growth, although stocks of many low-performing companies saw unusual price hikes.
Bangladesh's capital market was one of the best-performing markets in Asia in the outgoing year, according to EBL Securities, in its yearly review.
Market analysts said the stocks soared as investors went after the large-cap banking sector stocks riding on the news of the higher operating profits reported by most banks in the outgoing year.
As banking is the biggest sector in the stock market, its upward trend impacted the index positively, according to a merchant banker.
Stocks prices of 26 out of the listed 32 banks rose on the day with the sector witnessing a 1.30 per cent gain.
Most of the listed banks witnessed higher profits in the just concluded calendar year on the back of a resurgence of demand for credit from the private sector, said the merchant banker.
Investors believe they will be able to make more profits by investing in bank stocks hopping for higher dividends for 2021, he added.
"Investors went for bargain hunting throughout the session as positive macroeconomic news and recent regulatory initiatives boosted investors' confidence," commented EBL Securities.
Two other indices also ended higher. The DS30 index, comprising blue chips, jumped 28.05 points to finish at 2,560 and the DSE Shariah Index rose 14.25 points to close at 1,445.
Turnover, a crucial indicator of the market, stood at Tk 8.94 billion on the country's premier bourse, falling slightly by 2.93 per cent over previous day's tally of Tk 9.21 billion.
Gainers took a modest lead over the losers as out of 378 issues traded, 294 advanced, 64 declined and 20 remained unchanged on the DSE trading floor.
A total number of 152,368 trades were executed in the day's trading session with a trading volume of 194.36 million shares and mutual fund units.
The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI)-soaring 388 points to close at 20,054 while the Selective Categories Index - CSCX-- rising 233 points to close at 12,046.
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