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The stock market opened higher on Wednesday, the last day of the month, as buoyant investors kept chasing lucrative shares in anticipation of quick gains just ahead of the national budget.
Finance Minister AHM Mustafa Kamal is all set to unveil the national budget for the fiscal year (FY) 2023-24 on Thursday.
Following the previous day’s modest rise, the market opened higher and the key index of the Dhaka Stock Exchange (DSE), went up by 20.26 points to stand at 6,366 after the first hour of trading at 11:00 am.
Turnover, the important indicator of the market, stood at Tk 4.10 billion within the first of trading at 11:00 am when the report was filed.
Market operators said some high-net-worth individuals were in a mood to pour fresh funds into insurance stocks after seeing many stocks rallying and generating short-term returns over the recent weeks.
“The buoyant investors chased quick rallies in selective stocks since the recent increase in market participation has bolstered confidence across the trading floor,” said a stockbroker.
Also, the income tax rebate offered by the government against investments in listed securities attracted some taxpayers as the fiscal year is nearing its end that created a short-term positive sentiment among the investors.
Two other indices also opened higher. The DS30 index, comprising blue chips, gained 1.99 points to reach 2,204 and the Shariah Index (DSES) rose 5.30 points to stand at 1,381 points till then.
Of the issues traded till then, 144 advanced, 29 declined and 154 remained unchanged.
City General Insurance became the most-traded stock with shares worth Tk 195 million changing hands after the first hour.
The Chittagong Stock Exchange (CSE) also opened higher with its All Share Price Index (CASPI) rising 31 points to 18,752 and the Selective Categories Index (CSCX) gaining 20 points to 11,218 after the first hour of trading.