Stocks gained 2.17 percent yesterday -- the highest in three weeks -- thanks to a buying spree in anticipation of a good run.

The banking sector, which accounts for 30 percent of the total market capitalisation, registered substantial gains in the last few days to pull up the DGEN to close at 4,177 points.

“Investors preferred the most-weighted banking sector anticipating a bear run in the market,” said Masrib Zahid, managing director of Cosmopolitan Finance, adding that it was encouraging to see that the DGEN was not dropping beyond the 4,000 points.

“However, it is a matter of concern that the volume is so low, which suggests low investor confidence,” he said.

Turnover rose by 23.94 percent from the previous day to Tk 218 crore.

“Investors were more upbeat on the banking sector, which gained by 3.46 percent,” IDLC Investments said in its daily market commentary.

“In addition, some other large cap stocks -- Grameenphone, Titas Gas and Lafarge Surma Cement -- experienced positive movements which turned it into a large cap rally,” the merchant bank said.

A total of 0.75 lakh trades were executed yesterday, with 6.96 crore shares and mutual fund units changing hands on the Dhaka bourse.

All the major sectors ended in the black. Banks rose by 3.45 percent, followed by non-bank financial institutions at 3.32 percent, power 2.17 percent, telecommunications at 0.80 percent and pharmaceuticals at 0.58 percent.

Of the 260 issues that traded on the DSE, 222 advanced, 33 declined and 5 remained unchanged.

National Bank was the top traded stock of the day with its transaction of 67.22 lakh shares worth Tk 15.21 crore.

Prime Leasing and Finance was the biggest gainer of the day, posting an 8.87 percent rise, while Modern Dyeing and Screen Printing was the worst loser, slumping 6.78 percent.

News: The Daily Star/Bangladesh/18th-Dec-12