Stocks bounced back strongly yesterday, snapping the previous week's downturn, mainly due to a substantial rise in the participation of investors.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), surged 97 points, or 1.76 percent, from that on the day before to reach 5,615.

Meanwhile, the DSES, the index that represents Shariah-based companies, rose 16 points, or 1.38 percent, to 1,234.

Similarly, the DS30, which comprises blue-chip stocks of a group of 30 renowned companies, increased 21 points, or 1 percent, to 1,996.

Market insiders attributed it to the participation of some big investors, saying they were encouraged by a finance ministry circular on Prof Shibli-Rubayat-Ul Islam's reappointment as chairman of the Bangladesh Securities and Exchange Commission (BSEC) for a second four-year term.

Prices of many stocks were very low, unseen in the last couple of years, due to which some investors found it rational to invest, said a top official of a leading stock brokerage firm.

As the market started to rise in the morning, investors gained confidence and bought shares, he said.

On the other hand, some large investors started to buy shares since the beginning of the day as they apparently saw bright prospects over the BSEC chief's reappointment, he added.

Turnover, an important indicator of the volume of shares traded during the session, grew 20 percent to Tk 613 crore.

Among the stocks that were traded, 300 advanced, 52 declined and 44 remained the same.

The rise in prices also involved stocks of companies which account for large amounts in market capitalisation, which is determined by the total market value of all their outstanding shares.

They include British American Tobacco Bangladesh, Grameenphone, the Power Grid Company of Bangladesh, Square Pharmaceuticals, and Walton.

British American Tobacco contributed the most, enabling the DSEX to rise by 14 points, while Square Pharmaceuticals contributed 7 points.

The scenario was the same at the Chittagong Stock Exchange. The CASPI, the all-share price index of the port city bourse, surged 183 points, or 1.16 percent, to 15,999.

The stock market was in a bear run mainly due to a crisis of confidence, said a leading merchant banker.

As the benchmark index of the DSE started off the day with a rising trend, some investors later joined in and the index bounced back strongly at the end of the day.

If the rising trend continues for several days, the stock market may see a bull run. It needs strong support from institutional investors now, he added.