The key index of the Dhaka Stock Exchange (DSE) crossed the 7,300- mark again on Wednesday, despite selling pressures from nervous investors.
The benchmark index DSEX slightly advanced by 5.6 points or 0.08% and closed at 7,303 points.
The blue-chip index DS30 of the country's premier bourse also increased by 0.18% to reach 2,696 points.
Participation in the market advanced mainly by aggressive selling pressure as investors are concerned that a natural correction might occur since the index skyrocketed over the last year, said EBL Securities in its daily market commentary to clients.
At the end of the day's trading session, 223 of the DSE scrips suffered a price fall, while 115 gained, and 38 remained unchanged.
Investors' participation, however, was higher as the DSE registered Tk2,270 crore in daily trading turnover.
The DSEX, which went below 3,600 points in March 2020, shot up to 7,336 earlier this month and nervous investors woke up to book some profits as they saw contradictory perspectives on market direction.
The Bangladesh Securities and Exchange Commission (BSEC) and market stakeholders argue that the rising index alone is not a risk at all as a large number of listed companies are performing well and their stocks are trading at a low price compared to corporate earnings.
The average price to earnings (PE) ratio of the DSE scrips is at 21, which is below 17 now if the loss-making firms are excluded from the calculation.
Investors generally assume the stocks with low PE ratios are undervalued and analysts do not think that the average market PE ratio is high if compared to the peer markets.
The Bangladesh Bank in recent months has been expressing its cautious stance regarding the stock market, suspecting stimulus fund diversion to stocks, and the central bank is taking actions against lenders for violating rules in stock investment.
Travel and leisure, non-bank financial institutions, cement, life insurance, textile fuel and power, service, and pharma sectors added to their market capitalisation on Wednesday.
The paper sector suffered the maximum price correction followed by jute, tannery, and ceramics.
The textile sector came up as the turnover leader sector with a 14.10% contribution in the day's transaction at the DSE.
Sea Pearl Beach Resort was the top gainer, while Savar Refractories was the top loser at the DSE.
The Chittagong Stock Exchange's (CSE) key index CASPI fell by 11 points to close at 21,323 on Wednesday.