Stocks witnessed a modest rise on Thursday after high volatility throughout the session as investors were active on both sides of the trading fence.

The market moved between positive and negative multiple times during the session but last moment buying pressure helped to keep the index slightly higher. DSEX, the core index of the Dhaka Stock Exchange (DSE), went up by 12.14 points or 0.19 per cent to settle at 6,312.

The core index added about 332 points in the past five days after the securities regulator imposed floor price on all securities. Turnover, the crucial indicator of the market, stood at Tk 11.90 billion, which was 0.42 per cent lower than the previous day's tally of Tk 11.95 billion.

Market operators said some of the investors preferred to book profit on quick-gaining stocks as the market witnessed sharp rise in the past four days while some took the opportunity of buying shares at lucrative prices. The turnover remained above Tk 11 billion for the past three consecutive sessions as participation of general investors increased, riding on favourable regulatory measures, said a merchant banker.

"The regulatory measures created a bullish vibe in the market that led to higher participation of the investors in it (market)," he added. Meanwhile, the banks can now calculate the stock market investment exposure limit on cost price basis instead of market price, according to a Bangladesh Bank (BB) circular issued on Thursday.

The BB issued the circular after the ministry of finance made a recommendation in a letter, which was sent to the central bank on Tuesday. "The banks' capital market exposure calculation on the cost price basis of stocks will reduce the sale pressure from the banks in coming months," said the merchant banker.

The optimistic investors are putting fresh funds in stocks expecting positive drive ahead riding on regulatory measures, said International Leasing Securities. "The investors were active on both sides of the trading fence as some of the investors booked profit from the recent market surge," said a stockbroker.

EBL Securities said the market managed to remain afloat on the green terrain as some optimistic investors took control of the market during the last hour of the trading session. The bourse witnessed volatile swings as investors booked profit, taking advantage of the continuous rise banking on some favourable regulatory interventions, but some last moment optimisms helped it to edge higher, said the stockbroker.

Two other indices also edged higher. The DS30 Index, comprising blue chips, gained 6.38 points to finish at 2,265 and the DSE Shariah Index (DSES) advanced 4.68 points to close at 1,375. The textile sector kept its dominance in the turnover chart, grabbing 27.4 per cent of the day's total turnover, followed by pharmaceuticals with 15.2 per cent and miscellaneous 11.5 per cent.

Major sectors showed mixed performances. The textile sector posted the highest gain of 1.60 per cent, followed by cement with 1.0 per cent, pharma 0.80 per cent, food 0.50 per cent, financial institutions 0.30 per cent and telecom 0.10 per cent. On the other hand, general insurance sector suffered most, losing 2.20 per cent, followed by life insurance with 1.80 per cent, power 0.40 per cent and banking 0.20 per cent.

Losers took a modest lead over the gainers as out of 381 issues traded, 199 declined, 129 advanced and 53 remained unchanged on the DSE trading floor.

Beximco was the most-traded stock with shares worth Tk 1.0 billion changing hands, followed by Olympic Industries, Malek Spinning Mills, Orion Pharma and Makson Spinning Mills.

Acme Pesticides was the top gainer, posting a 10 per cent rise while Federal Insurance was the worst loser, losing 6.64 per cent. The Chittagong Stock Exchange (CSE) also posted a marginal gain with the CSE All Share Price Index - CASPI -gaining 58 points to settle at 18,540 and the Selective Categories Index - CSCX -rose 36 points to close at 11,109.

Of the issues traded, 122 declined, 117 advanced and 57 remained unchanged on the port city bourse.The CSE traded 10.23 million shares and mutual fund units with turnover value worth Tk 213 million.