The stock markets in Bangladesh rebounded yesterday, recovering from the previous trading day's sharp decline that was spurred by rising tensions between neighbouring countries India and Pakistan, which had prompted widespread sell-offs across both of the country's bourses.

The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), advanced by 99.86 points, or 2.08 percent, to close at 4,902.

The other two indices of the premier bourse also posted gains.

The DSES Index, which tracks Shariah-compliant companies, rose by 26.28 points, or 2.51 percent, to 1,074.

Meanwhile, the DS30 Index, representing blue-chip firms, increased by 27.03 points, or 1.51 percent, to 1,820.

Despite the recovery, market turnover, a key indicator of trading activity, plunged to Tk 366 crore, marking a 29.12 percent decline from the previous day's trading volume.

The banking sector led the turnover chart, accounting for 23.81 percent of the total market activity. Beach Hatchery Limited was the most traded stock of the day, accounting for a turnover of Tk 23 crore.

Out of the securities traded at the DSE, 377 saw a rise in prices, 10 witnessed declines, and the remainder remained unchanged.

The Khulna Printing & Packaging Ltd topped the gainers' list with a 10 percent rise, whereas Meghna Condensed Milk Industries Ltd saw the steepest loss, falling by 5 percent.

According to the daily market update from Shanta Securities Ltd, market movements were largely driven by gains in the market capitalisation of travel and leisure, paper and printing, and banking sectors.

Market capitalisation refers to the total market value of a company's outstanding shares held by investors in each respective sector.

In its daily market commentary, BRAC EPL Stock Brokerage noted that all major sectors composed of large-cap stocks ended the day on a positive note.

The engineering sector posted the highest gain of 3.05 percent, followed by non-bank financial institutions (2.99 percent), fuel and power (2.50 percent), and banking (1.82 percent).

The pharmaceuticals sector rose by 1.51 percent, food and allied by 1.34 percent, and telecommunications by 0.84 percent.

At Chittagong Stock Exchange, the CSE All Share Price Index (CASPI)—the key index of the port city's bourse—gained 113.69 points, or 0.84 percent, to close at 13,703.