Stocks bounced back last week on the back of the regulatory move to relax rules for banks' capital market exposure.

DSEX, the benchmark index of Dhaka Stock Exchange, rose 87.45 points, or 1.93 percent, to close the week at 4,608.32 points.

The central bank's directive relaxing banks' capital market exposure limit acted as a market catalyst, broadening the scope for investment, said IDLC Investments.

From January next year, the banks' capital given to their stockmarket subsidiaries will not be considered a portion of their exposure, Bangladesh Bank said in a notice on December 20.

The news came as a relief to investors who were apprehensive of institutional sales, and the sentiment was reflected in the market, according to IDLC.

However, the market could not maintain the robust gain for the rest of the week due to a lack of encouraging economic and industrial outlook, the merchant bank added.

Turnover averaged Tk 437.35 crore, which was 43.35 percent higher than a week earlier.

Among the major sectors, non-bank financial institutions rose by the most, of 7.06 percent, during the week, followed by ceramics at 3.68 percent, textile 3.06 percent and IT 2.57 percent.

Conversely, mutual funds and pharmaceuticals fell 1.26 percent and 0.36 percent respectively.

Of the 325 issues that traded on the premier bourse, 231 advanced, 65 declined and 29 remained unchanged.

Beximco Pharma topped the week's turnover chart with its transactions of 1.01 crore shares worth Tk 87.08 crore. Quasem Drycells, Beximco, KDS Accessories and Emerald Oil Industries rounded off the top five positions.

Baraka Power was the week's top gainer, registering a 16.85 percent increase. LR Global Mutual Fund One was the biggest loser, registering a drop of 10.14 percent.

Chittagong stocks also soared last week, with the bourse's benchmark index, CSCX, increasing 150.9 points, or 1.79 percent, to finish the week at 8,550.06 points.

Gainers beat losers as 199 advanced and 55 declined, while 18 finished unchanged on the Chittagong Stock Exchange.

The port city bourse traded 4.25 crore shares and mutual fund units worth Tk 159.03 crore in turnover.