Stocks extended their rally on Sunday with the benchmark index of Dhaka Stock Exchange (DSEX) surpassing the 'psychological' threshold of 7,000 mark for the first time after inception in 2013, buoyed by regulatory measures.
DSEX, the prime index of the DSE, soared 71.76 points or 1.02 per cent to settle at more than 7,052 - the highest since its inception nearly nine years back in 2013.
Two other indices--the DSE 30 Index and the DSE Shariah Index (DSES) -- followed suit to close at their new highs of 2,533 and 1,528, after rising 37.13 points and 19.98 points respectively.
DSE launched the DS30 Index on January 27, 2013 with a base point of 1,460.30 while DSES was introduced on January 20, 2014 with a base point of 941.27.
The market capitalisation of the prime bourse also hit a fresh all-time high at Tk 5,692 billion on Sunday, surpassing the previous high of Tk 5,637 billion recorded just three days back on Thursday.
Turnover, a crucial indicator of the market, climbed to Tk 28.68 billion on the country's premier bourse, in a further buck by 16 per cent over previous day's mark of Tk 24.74 billion.
Market experts said stocks sparked a rally as buoyant investors are putting fresh funds into stocks anticipating positive momentum ahead riding on regulatory measures.
The investors are rushing to the capital market amid lower returns on the money market, limited scopes of investment in other instruments, and the regulator's latest measures, said a merchant banker.
"As the deposit rates are very low in the banks, many investors are diverting some of their funds from the money market to the equity market."
He noted that stocks climbed fresh records almost every day, as more and more investors joined the rally with an expectation of better return from the bullish market.
The investors are more confident and buoyant amid the securities regulator's recent move to extend the credit facilities, increasing the IPO quota for general investors coupled with central bank's decision regarding stock-investment reports on a monthly basis instead of quarterly, said a leading broker.
The Bangladesh Securities and Exchange Commission (BSEC) has recently revised the public issue rules, increasing the IPO quota for general investors to 70 per cent, up from 60 per cent earlier.
He noted that the market remained bullish over the past few months while the latest regulatory measures have further boosted investor sentiment.
He said continuous growth in turnover and index pushed the investors' confidence to a new level, and high turnover suggested that institutional investors are largely active in the market.
However, he advised the investors to be cautious and not to invest in overvalued stocks in order to avert any misfortune.
"Investors buoyancy led by positive regulatory measures added strength to the capital market to hold its firm position," commented EBL Securities, in its regular market analysis.
The capital market is expected to extend the ongoing upward momentum due to the event of prevailing excess liquidity and dismal return on the money market, said the stockbroker.
Gainers took a strong lead over the losers, as out of 375 issues traded, 208 closed higher, 130 lower and 37 remained unchanged on the DSE trading floor.
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