The benchmark index of the Dhaka Stock Exchange rose to its highest level in the last one and a half years yesterday thanks to the active participation of institutional investors buoyed by the growing rollout of coronavirus vaccines.

The DSEX surged 109 points or 2.10 per cent before closing the day at 5,328.27, the highest since July 7 of 2019.

Investors, especially institutional investors have been pouring money into the stock market after the UK, and the US started administering vaccination of Covid-19, said a top official of a leading brokerage firm.

The mass immunisation has given investors hope that they are going to see a quick rebound in the global economy, including Bangladesh, the broker said.

The UK administered the vaccines on December 8 and the US on December 14. Mass vaccination across the European Union began yesterday.

Since December 8, the DSEX rose 279 points, or 5.5 per cent and the turnover almost doubled.

The market value of the stocks in the DSE edged up 3.19 per cent, or Tk 13,603 crore to stand at Tk 439,397 crore yesterday.

Turnover, an important indicator of the market, rose to Tk 1,521 crore, which was Tk 1,405 crore on the previous day. Yesterday's turnover was the highest since September 2017.

However, the DSE recorded a turnover of Tk 2,543 on June 28, but it was driven by a block trade for changing the ownership of GlaxoSmithKline to Unilever.

"The market has remained undervalued for the last few months, and the pandemic intensified it," said Mir Ariful Islam, head of research of Prime Finance Asset Management Company.

"Now, investors are returning to the market."

The stock index usually remains in positive territory at the end of a calendar year.

"As the market crossed the 5,200 level strongly and the turnover is also moving handsomely, we are hopeful that the market will maintain a standard level in the upcoming months," Islam added.

The stock of Robi touched the circuit breaker on its second day of trading as it rose 50 per cent to Tk 22.50 because of higher demand.

Newly listed companies are allowed to rise a maximum of 50 per cent a day in the first two trading days, and then the increase is capped at 10 per cent.

Robi, the second-largest mobile phone operator in Bangladesh, topped the gainers' list followed by SS Steel, LankaBangla Finance, Desh Garments and GPH Ispat.

Beximco Ltd was the most traded stock with shares worth Tk 126 crore changing hands, followed by IFIC, Beximco Pharmaceuticals, Bangladesh Submarine Cables and LafargeHolcim Bangladesh.

Of the total shares traded, 238 advanced, 66 declined, and 59 remained unchanged.

"Well-performing and blue-chip stocks have been rising the most for the last few days, which is a good sign for the market," said Abdul Alim, a stock investor.

Insurance stocks are going through a correction after surging 80 to 90 per cent, and this is very normal, he said.

Yesterday, Peoples Insurance shed the most of 6.72 per cent followed by Pioneer Insurance, Bangladesh General Insurance, Republic Insurance and Phoenix Insurance.