Stocks closed higher on Monday riding on the price rise of life insurance companies.
Of the top 10 gainers in the Dhaka Stock Exchange Monday, 5 were life insurers.
The market has recovered from a 10 percent slump at the beginning of the year. The DSEX witnessed a 7.1 percent year-to-date gain till close on Monday.
"It is all based on hopes for increased fund flow. We are looking for improvements in the fundamental scenario," said an equity analyst at a top brokerage firm.
The market on Monday has withstood a profit booking attempt.
The market was volatile over the first half of the session. A buying spree returned in the second half mainly because of the increased appetite of mass investors.
DSEX, the broad-based benchmark at the Dhaka Stock Exchange (DSE) gained 0.72 percent to close at 4,768.
But the blue-chip index DS 30 gained only 0.42 percent while the Shariah-compliant securities' index DSES was up 0.74 percent.
Amid increased participation, turnover at the DSE increased to Tk976 crore from Tk 916 crore on Sunday.
Life insurance, automobile, jute, cement and chemical companies had the highest gains on Monday. On the other hand, non-banking financial institutions, electric appliances, tannery and ceramic stocks suffered the biggest losses.
The top 10 gainers at the DSE were Rupali Life Insurance, Meghna Life Insurance, Metro Spinning, Prime Islami Life, Aftab Automobiles, Popular Life Insurance, Fareast Life, Golden Harvest Agro Industries, Saiham Textile and Western Marine Shipyard Ltd.
Average price to earnings ratio of DSE crossed 12.5. This had come below 12 in January because of a drastic market fall.
At the DSE, 195 scrips gained, while 128 lost price and 32 remained unchanged.
At the Chittagong Stock Exchange (CSE), 87 lost against 155 gainers and 31 remained unchanged.
Turnover at the CSE also increased to Tk 32.5 crore from Tk 30 crore in the previous session.
CSCX, the broad-based index at the port city bourse, rose 0.66 to close at 8,816. While the blue-chip index CSE 30 gained 0.59 percent.