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Dhaka stocks posted marginal gains on Tuesday, although the blue chip index fell, as bargain hunters put fresh bets on sector specific shares expecting quick gains.
Market analysts said the recent free fall of the market attracted fresh investments as many stocks came down to a lucrative price level.
The market rally was largely supported by high market liquidity, with turnover climbing 51 per cent over the previous day to Tk 5.93 billion, the highest in three weeks.
Pharmaceuticals, life insurance, engineering and textile sectors captured half of the day's total turnover as optimistic investors bet on stocks.
Along with high turnover, the market index edged up for the second day as some lucrative stocks saw a substantial price surge.
Accordingly, the benchmark index of the Dhaka Stock Exchange (DSE) went up by almost 12 points or 0.22 per cent to settle at 5,247, after gaining nearly 2 points the day before.
Beximco Pharma, Prime Bank, LafargeHolcim, Beacon Pharma, and Fortune Shoes were top index movers. They jointly accounted for almost 10-point index gain.
Buyers continued their dominance, causing a majority of stocks to continue to see price appreciation. Investor sentiment somewhat recovered from the prolonged depressed vibe.
"The opportunistic investors kept their buying spree in stocks deemed lucrative after major price corrections," said Md Sajedul Islam, managing director of Shyamol Equity Management.
He, however, said investors mostly focused on short-term bets amid the prevailing macroeconomic challenges.
Investors were active on both sides of the trading fence, while buyers ended up on a dominant side as a section of investors sought to take positions in particular stocks that had undergone significant corrections, EBL Securities said.
However, cautious investors preferred to remain watchful due to worries over the market momentum ahead of the announcement of the national budget for FY25, said the stockbroker.
The DSES Index, which represents Shariah-based companies, gained almost 4.4 points to 1,142. However, the blue chip index DS30, a group of 30 prominent companies, lost 4.4 points to 1,852.
Most of the sectors posted gains, with life insurance securing the highest gain of 2.9 per cent, backed by Rupali Life Insurance, which rose more than 9 per cent, followed by tannery and IT.
On the other hand, mutual funds were the worst loser, shedding 1.1 per cent, followed by services, and travel.
Majority of the stocks saw a price surge, as out of the 397 issues traded, 181 closed higher, 147 ended lower and 69 remained unchanged on the DSE trading floor.
Meghna Petroleum became the most-traded stocks with shares worth Tk 259 million changing hands, followed by Standard Bank, Central Pharma, Rupali Life Insurance, and Unilever Consumer Care.
HR Textiles was the top gainer, rising 9.9 per cent, while eGeneration was the worst loser, losing 3 per cent.
The Chittagong Stock Exchange (CSE), however, ended lower with its All Share Price Index (CASPI) shedding 29 points to settle at 14,971 and the Selective Categories Index (CSCX) losing 17 points to 9,006.