The country's stock market rose yesterday thanks to a boost in confidence among institutional investors, despite the removal of floor prices of all listed companies.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose by 16 points, or 0.27 per cent, to 6,069.

After deciding on lifting the floor price on Thursday, the Bangladesh Securities and Exchange Commission (BSEC) implemented it yesterday.

The market regulator had initially lifted the floor price of 66 companies in April.

On March 19 last year, the BSEC imposed floor prices for all stocks by calculating their average prices of the preceding five days of trade to stop the index from falling amid the pandemic.

Although most market analysts and foreign investors criticised the decision, general investors welcomed it and repeatedly urged for the policy to be retained.

However, the BSEC decided to lift the floor prices considering the demand from foreign investors and potential long-term negative impacts on the market.

"Many general investors feared that the market would drop after the decision was implemented, but this did not happen as institutional investors are active in the market," said a merchant banker.

This is good news for the market since foreign investors will now be more interested in making investments, he said.

"The floor prices had made the market illiquid for many stocks," he added.

Turnover, an important indicator of the market, dropped 0.64 per cent, to Tk 1,835 crore.

At the DSE, 156 companies advanced, 179 declined, and 38 remained unchanged.

Monno Fabrics topped the gainers' list, rising 10 per cent, followed by National Feed Mills, Salvo Chemical Industry, Monospool Paper Manufacturing Company and Tamijuddin Textile Mills.

Royal Tulip Sea Pearl Beach Resort & Spa shed the most, dropping 9.98 per cent, followed by SK Trims and Industries, Samata Leather Complex, Prime Finance First Mutual Fund and Central Insurance.

Chittagong Stock Exchange also advanced yesterday. The CASPI, the general index of the port city bourse, rose 12.89 points, or 0.07 per cent, to 17,583.

Among 304 stocks to witness trade, 117 advanced, 151 fell, and 36 remained unchanged.

Meanwhile, IFIC Bank decided to issue a perpetual bond to raise Tk 1,000 crore in order to support the bank's additional tier-I capital under Basel-III.

A perpetual bond is fixed income security with no maturity date, with the issuer paying interest to investors in the form of coupon payments.

Of the amount, Tk 900 crore would be raised through private placement and the rest through public offer.

The bond will be issued after IFIC secures the required approval. To get the consent of its stockholders, the lender will hold an extraordinary general meeting on August 26.