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Stocks extended their rally for a second straight session on Monday, with the key index of the prime bourse hitting nearly three-week high, as investors returned to the heavyweight bank shares following recent corrections.
The opportunistic investors were taking advantage of oversold bank stocks that had experienced significant corrections in the past few sessions, market analysts said.
DSEX, the broad index of the Dhaka Stock Exchange, rose more than 66 points or 1.23 per cent to settle at 5,455. The prime index added 80 points in the past two consecutive sessions.
The blue-chip DS30 index, a group of 30 prominent companies, also gained 27 points to 2,128 while the DSES index, which represents Shariah-based companies, rose 10 points to close at 1,189.
EBL Securities said stocks extended their bullish momentum as broader buying appetite drove indices higher, with investors again turning back to the heavyweight bank stocks following recent corrections, further strengthening the market's upward trajectory.
The price appreciation of leading bank stocks such as BRAC Bank, Islami Bank, City Bank, Bank Asia and NCC Bank, largely supported the overall market rally as they jointly accounted for a one-third gain for the day's index.
BRAC Bank, which surged 2.53 per cent, contributed a 6.7-point rise to the key index alone. The bank's stock closed at Tk 68.8 on Monday.
Islami Bank, another blue chip stock, also added 4.1-point to the prime index while City Bank and Bank Asia added 3.1 points and 1.6 points respectively to the key index.
Turnover, a crucial indicator of the market, remained satisfactory as total turnover stood at Tk 11.78 billion, slightly down from one year's highest turnover of Tk 12 billion.
Investors were mostly active in the pharmaceuticals sector, which accounted for 16 per cent of the day's total turnover, followed by textile (12.3 per cent) and general insurance (11.8 per cent).
Most of the traded stocks saw price hike, as out of 396 issues traded, 238 closed higher, 114 ended lower and 44 remained unchanged on the DSE trading floor.
Major sectors posted gain, with the banking sector securing 1.90 per cent rise, followed by power, telecom, food and pharmaceuticals sectors.
The non-bank financial stocks took a big hit as eight out of top 10 losers came from the NBFI sector, following the news that the central bank is going to liquidate some of the weak NBFIs.
The Chittagong Stock Exchange (CSE) also ended higher, with CSE All Share Price Index (CASPI) rising 170 points to settle at 15228, and its Selective Categories Index (CSCX) gained 111 points to 9,362.
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