Stocks extend rally for second straight session on bargain hunting

Stocks today extended gaining streak for a second consecutive trading session today as investors continued to accumulate fundamentally strong and perceived undervalued shares amid expectations of market-friendly developments.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) advanced 11.6 points to close at 5,617, up from 5,605 points in the previous session.

Market analysts said easing concerns over potential shipping disruptions in the Strait of Hormuz also helped improve investor sentiment and supported buying interest across selected sectors.

Although the market came under broad-based selling pressure at the opening, bargain hunters gradually stepped in to absorb the selling. 

Sellers maintained dominance until the middle of the session, but renewed buying interest in the latter half enabled the market to recover and finish in positive territory, reflecting growing confidence among investors regarding near-term market prospects.

Turnover on the DSE rose significantly by 13.5 percent to TK  9.4 billion, compared with TK  8.2 billion in the previous session.

Among the sectors, Engineering contributed the highest share of turnover at 14.0 percent, followed by Pharmaceuticals at 13.8 percent and General Insurance at 11.4 percent.

Sector-wise performance remained mixed. Financial Institutions posted the highest gain of 2.8 percent, followed by Information Technology with 1.8 percent and Mutual Funds with 0.9 percent. On the downside, Miscellaneous shares fell 1.8 percent, while Ceramic and Paper sectors declined by 0.7 percent and 0.5 percent respectively.

Out of the 396 issues traded on the DSE, 176 advanced, 147 declined and 73 remained unchanged.

Meanwhile, trading at the Chittagong Stock Exchange (CSE) showed a mixed trend. The Selective Categories' Index (CSCX) lost 6.8 points, while the All Share Price Index (CASPI) edged up by 1.8 points at the close of trading.