The stock market yesterday saw its highest single day rise in the past three months after an announcement by the Bangladesh Securities and Exchange Commission (BSEC) that the stock regulator would seek policy support from the government.

The DSEX, the key index of the country's premier bourse Dhaka Stock Exchange, went up by 147.51 points, or 2.94 percent from the previous day, to close at 5,164 yesterday.

On the same day, Finance Adviser Salehuddin Ahmed visited the regulatory body, where the commission placed its policy support proposals to boost investor confidence.

After the meeting, Ahmed said that the government would work closely to develop the market to international standards.

"Today, we have discussed several issues and are taking swift steps to address the existing problems in the capital market," he said.

"We will take many steps and you will see the result gradually," the finance adviser said

"We have discussed the development of the mutual fund sector and ways to raise investor confidence," he said while replying to a media query.

"We will take many steps and you will see the result gradually," the adviser said while leaving the BSEC.

In a press release, the BSEC said a presentation was given on the "Current Scenario of the Capital Market of Bangladesh: Challenges, Prospects, and Strategies" during the meeting with the finance adviser.

In the presentation, the stock regulator urged the government to rationalise capital gains tax, widen the tax gap between listed and non-listed companies and provide enough liquidity to the Investment Corporation of Bangladesh (ICB).

It also urged the government to bring state-run companies to the market and take necessary steps to attract multinational companies to the bourse. The BSEC also sought a guideline, making it mandatory for companies to go public if they borrow a certain amount from the banking sector.

Yesterday, the stock market extended its winning streak for the second consecutive day as investors continued their buying spree after a prolonged decline in the past few weeks, pushing the DSEX to a four-year low.

The DSES index, composed of Shariah-based companies, grew by 22.55 points, or 2.02 percent, to 1,136. The DS30 index, tracking blue-chip firms, edged up by 57.58 points, or 3.10 percent, to 1,915.

BAT Bangladesh contributed a 14.64-point rise to the DSEX. BRAC Bank and LafargeHolcim Bangladesh together contributed over 13 points to the index.

Of the 397 scrips, 373 saw price increases while 15 declined and the remaining 9 did not see any price movement.

The day's turnover surged by 49.84 percent to Tk 519 crore compared to the previous day's trading session. The banking sector dominated the turnover chart, accounting for 19.15 percent of the total.

Almost all sectors closed in positive territory. The paper and printing, general insurance and non-bank financial institutions (NBFI) sectors were the top three performers.

However, Islami Bank Bangladesh, Midland Bank, Khan Brothers PP Woven Bag Industries, Pragati Life Insurance, Daffodil Computers Limited, Alltex Industries Limited and ADN Telecom suffered losses. Among the decliners, Islami Bank suffered the highest loss of 4.27 points.