The bullish momentum continued in the stockmarket for the seventh consecutive session yesterday.

The Dhaka bourse's key index reached the 5,500-point mark with the turnover crossing Tk 2,000 crore for the first time in more than six years.

The escalation of the turnover and index, the two most important indicators of the market, suggests that investors are getting back their confidence in the market, which has been sluggish since the price debacle of 2011.

DSEX, the benchmark index of Dhaka Stock Exchange, rose 97.61 points or 1.78 percent to finish the day at 5,575.47 points -- the highest since the introduction of the index on January 27, 2013.

The turnover stood at Tk 2,064.96 crore yesterday, up 11.22 percent from the previous day. The turnover last crossed Tk 2,000 crore on December 7, 2010.

“Investors are shrugging off fears,” said Md Zahirul Islam, chairman of Prilink Securities, a stockbroker.

“Their confidence is growing gradually and they are injecting fresh funds into the market.”

Positive macro-economic indicators, including low interest and deposit rates, political stability and lucrative prices of securities, are the main factors that are driving the investors now, he said.

“Still the average price-earnings ratio of banking stocks is only 5-6, meaning the prices can go up further.”

Of the traded issues on the premier bourse yesterday, 224 advanced, 86 declined and 18 remained unchanged.

Beximco dominated the turnover chart with its transactions of 1.99 crore shares worth Tk 74.99 crore, followed by Baraka Power, Jamuna Oil, LankaBangla Finance and MJL Bangladesh.

Among the major sectors, non-banking financial institutions increased the most—by 6.42 percent—in market capitalisation, followed by mutual funds 4.03 percent, fuel and power 3.52 percent, general insurance 2.33 percent, banks 2.75 percent, cement 1.31 percent and textiles 0.85 percent.

Conversely, life insurance declined 0.34 percent.

Padma Oil was the day's best performer, posting a 9.96 percent gain. Imam Button Industries was the worst loser, plunging 7.02 percent.

Chittagong stocks rose with the bourse's benchmark index, CSCX, increasing 171.06 points or 1.67 percent to close at 10,379.32. Gainers beat losers as 186 advanced and 74 declined, while 16 finished unchanged on the Chittagong Stock Exchange.

The port city bourse traded 4.48 crore shares and mutual fund units, generating a turnover of Tk 114.8 crore.