Stocks rebounded strongly on Wednesday after a single-day break, as the securities regulator's various steps to revive the capital market have boosted the investor confidence.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), jumped 100.32 points or 2.21 per cent to close at 4,633, after shedding 12 points in the previous session.
The key index crossed the 4,600-mark after five and a half months since February 25.
Market operators said the securities regulator's tough stance on minimum shareholding requirements and crackdown on wrongdoers, expansionary monetary policy and some positive macro indicators encouraged investors to take position on large-cap stocks.
"Investors exerted buy pressure on most of the sectors following revived optimism as the regulator's attempts to undertake strict measures for strengthening the market and some positive macro indicators gave investors a major boost," commented the UCB Capital Management.
On July 2, the Bangladesh Securities and Exchange Commission (BSEC) asked 61 directors of 22 listed companies to comply with minimum 2.0 per cent shareholding requirements within 45 days.
The stock market regulator also directed the listed companies and their board of directors to comply with the directive regarding holding of minimum 30 per cent shares jointly by the directors, other than independent ones, within 60 working days from July 29.
According to the BSEC, some 42 listed companies have not yet complied with this directive.
The stern actions taken by the securities regulator made a positive impact on the stock prices, said a merchant banker.
On Wednesday, two other indices of the DSE also ended higher. The DS30 index, comprising blue chips, advanced 37.32 points to finish at 1,581 and the DSE Shariah Index rose 24.42 points to close at 1,088.
Turnover, the crucial indicator of the market, crossed Tk 11 billion-mark once again to reach Tk 11.20 billion on the country's premier bourse, 6.87 per cent up from the previous day's mark of Tk 10.48 billion.
Liquidity support fund by the Bangladesh Bank and the cut in bank deposit rates -- maximum up to 6.0 per cent for time deposit -- have paved the way for new investment in the market, said a leading broker.
Among the major sectors, financial institutions posted the highest gain of 5.10 per cent, closely followed by engineering with 4.50 per cent, telecom 3.90 per cent, food 3.80 per cent and banking sector 3.10 per cent.
Gainers outnumbered the losers, as out of 355 issues traded, 199 closed higher and 115 ended lower while 41 issues remained unchanged on the DSE floor.
A total of 215,395 trades were executed in the day's trading session, with a trading volume of 390.72 million shares and mutual fund units.
The market-cap on the premier bourse also rose to Tk 3,522 billion on Wednesday, from Tk 3,454 billion in the previous session.
Beximco Pharma topped the turnover chart with shares worth Tk 570 million changing hands, closely followed by Brac Bank, Beximco, Square Pharma and BTABC.
Style craft was the day's best performer, posting a gain of 9.99 per cent while Savar Refactories was the worst loser, shedding 9.89 per cent.
The Chittagong Stock Exchange (CSE) also ended higher with its All Shares Price Index (CASPI) soaring 275 points to close at 13,165 and the Selective Categories Index -- CSCX -- rising 161 points to finish at 7,961.
Of the issues traded, 164 gained, 90 declined and 30 remained unchanged on the CSE.
The port city bourse traded 18.84 million shares and mutual fund units with turnover value of Tk 351 million.