The Dhaka Stock Exchange (DSE) closed the week on a slightly positive note amid choppy trading as some investors showed interest in stocks with lucrative prices during the first three sessions.

The DSEX, the benchmark index of the country's premier bourse, edged up 29 points in the past five days, or 0.50 per cent, to close at 6,257 points yesterday.

The DS30, consisting of blue-chip companies, rose by 0.20 per cent to 2,208 points while the DSES, which represents shariah-compliant companies, advanced 0.80 per cent to 1,373 points at the same time.

Although the market indices were in an upward trend earlier this week, cautious investors that later opted to book quick profits slowed their rise, according to market analysts.

However, optimistic investors remained active on the trading floor as the market regulator had urged insurers to come up with fresh investments, International Leasing Securities said in its weekly review.

Moreover, the Capital Market Stabilization Fund provided capital support to tackle the liquidity crisis.

So, all these initiatives created a positive sentiment among investors as they increased participation in the market, it added.

As such, weekly average turnover at the DSE rose to Tk 491.1 crore, up 59.72 per cent from the week before.

On the other hand, investments in certain stocks have become stuck due to the floor price mechanism and so, most of their investors have become silent and are keeping away from the market, a stockbroker said.

The floor price is the lowest price at which a stock can be traded. Having been set on July 29, the floor price for each stock is calculated based on their average closing price on July 28 this year and the preceding four days.

"Investors have no confidence in the market to make fresh investments amid the country's current economic scenario," he said.

On one side, raw material prices are rising and peoples' purchasing power has dropped while on the other, the local currency is at risk of falling further in value.

"So, investors fear making investments in this situation," the stockbroker added.

All sectors achieved price appreciation except general insurance, which dropped 0.08 per cent, while ceramics advanced 2.9 per cent.

Investor activity was mostly concentrated on the pharmaceuticals and chemicals (27.3 per cent), IT (13.1 per cent), and fuel and power (8.7 per cent) sectors.

A top official of a merchant bank said most institutional investors remain on the side-lines as they fear further erosion of their funds in the present economic situation.

The stockbroker then said investors will avoid pouring their funds in the stock market until they regain confidence on the economy.

Meanwhile, some individual investors are buying stocks to take advantage of their lucrative prices.

Even those institutional investors that are buying stocks are only doing so to keep the request of the stock market regulator, he added.