Stocks bounced back yesterday upon the news of the central bank's relaxation of its rules for banks' capital market exposure.

DSEX, the benchmark index of Dhaka Stock Exchange, jumped up 67.33 points or 1.49 percent, finishing the day at 4,578.87 points.

Optimism resurfaced riding on the news of final resolution on banks' capital market exposure adjustment, said IDLC Investments.

From January, banks' capital given to their stockmarket subsidiaries will not be counted as capital market exposure, Bangladesh Bank said in a notice on Sunday.

The move will increase banks' investment capacity in the stockmarket, the IDLC said.

Relief from the fear of anticipated selling pressure from the institutional end as well as hope for fresh investments rejuvenated the investors' sentiment, it said.

Moreover, the availability of undervalued stocks due to the recent negative momentum in the market attracted the opportunistic investors, IDLC added.

Shares of all the major sectors jumped as investors geared up the buying interest on hopes of eased institutional sell pressure in market, said LankaBangla Securities.

The DSE in a statement also lauded the central bank for the rules relaxation and said the move will have a positive impact on the secondary market.

Turnover, another important indicator of the market, also rose 40.52 percent to Tk 488.87 crore, with 9.68 crore shares and mutual fund units changing hands on the DSE.

Of the traded issues, 247 advanced and 51 declined, with 22 securities closing unchanged on the premier bourse.

Quasem Drycells dominated the turnover chart with transaction of 16.32 lakh shares worth Tk 17.21 crore, followed by Beximco Pharma, Square Pharma, KDS Accessories and BSRM Steel.

Among the major sectors, fuel and power increased 2.2 percent in market capitalisation, followed by cement 2.16 percent, food and allied 1.82 percent, banks 1.66 percent and telecom 0.21 percent. Only the paper and printing sector declined 0.76 percent.

Phoenix Finance and Investments was the day's best performer with its 10 percent gain, while Aziz Pipes was the worst loser, shedding 5.68 percent.

Chittagong stocks also soared yesterday, with the bourse's benchmark index, CSCX, gaining 123.03 points or 1.46 percent to finish the day at 8,507.35 points.

Gainers beat the losers as 188 stocks advanced and 33 declined, while 16 finished unchanged on the Chittagong Stock Exchange. The port city bourse traded 76.11 lakh shares and mutual fund units worth Tk 21.89 crore.