Stocks rebound on renewed optimism

Stocks on Tuesday rebounded strongly as renewed optimism over possible favourable revisions to the proposed margin rules boosted investor confidence and triggered broad-based buying across the market.

The DSEX of the Dhaka Stock Exchange (DSE) the broad index of the premier bourse, advanced 41.3 points to close at 5,899, up from 5,858 in the previous trading session.

The market maintained a firm upward trend throughout the session as sustained buying interest and stronger investor participation drove price gains across most listed securities.

Insurance sector stocks stabilized after several sessions of heavy selling amid expectations of potential regulatory easing on margin eligibility criteria. Buying interest also shifted to non-bank financial institution (NBFI) stocks on hopes of short-term gains.

Turnover on the DSE rose 16.9 percent to Tk 1130cr from Tk 970cr in the previous session, reflecting improved market activity.

Among the sectors, textiles accounted for the largest share of turnover at 18.4 percent, followed by pharmaceuticals at 11.8 per cent and banks at 11.2 per cent.

Most sectors ended the day in positive territory. Mutual funds posted the highest gain with a 4.5 percent rise, followed by financial institutions at 3.6 per cent and tannery stocks at 2.4 per cent.

Only the services and pharmaceuticals sectors recorded marginal losses of 0.5 percent and 0.1 per cent, respectively.

Out of the 396 issues traded on the DSE, 291 advanced, 56 declined and 49 remained unchanged.

The Chittagong Stock Exchange (CSE) also ended higher, with the Selective Categories Index (CSCX) gaining 37.3 points and the All Share Price Index (CASPI) rising 60.2 points.