Written by The Banking Post
The Dhaka Stock Exchange (DSE) extended its rally for a third consecutive week, driven largely by strong buying in banking stocks as investors positioned themselves for a more stable post-election environment and a possible economic recovery.
Market analysts said broad-based participation and selective buying in fundamentally strong shares lifted confidence. The ongoing earnings season also supported sentiment, with 20 listed companies publishing quarterly results during the week, allowing investors to recalibrate their positions.
Banks remained at the centre of attention. “Banks are likely to benefit the most from any economic recovery,” said Ahsanur Rahman, CEO of BRAC EPL Stock Brokerage. He noted that lenders had suffered from weak trade flows during the slowdown, but many investors now expect earnings to improve if economic activity rebounds. Ongoing reforms, he added, have kept stronger banks attractive to both local and foreign investors, boosting interest in names such as BRAC Bank.
The banking sector accounted for nearly 19 per cent of total market turnover and posted a weekly gain of about 4 per cent, underscoring its role in lifting the broader market.
The market traded for four sessions this week, opening strongly and maintaining momentum through the first three days before some profit-taking trimmed gains in the final session. Even so, the benchmark DSEX index ended the week up more than 80 points, or 1.55 per cent, at 5,234.
Over the past three weeks, the DSEX has climbed 215 points, while total market capitalisation rose by Tk 152 billion to Tk 6.99 trillion.
The blue-chip DS30 index added 15 points to close at 2,002, while the Shariah-based DSES index gained 38 points to 1,072. Price gains in a handful of large-cap stocks—Islami Bank, Walton, Al-Arafah Islami Bank, BRAC Bank and Renata—accounted for a combined 107-point rise in the DSEX. Islami Bank alone contributed more than 57 points as its share price jumped 21 per cent during the week.
EBL Securities said the market’s upward trend was supported by sustained buying of perceived undervalued blue-chip stocks, aided by greater clarity on the political front following the national election.
Despite the positive close, weekly turnover fell to Tk 26.73 billion from Tk 28.97 billion a week earlier due to fewer trading days. Average daily turnover, however, rose 15 per cent to Tk 6.68 billion, signalling increased participation.
Concerns lingered over speculative activity, as ‘Z’ category stocks dominated the top gainers’ list. Nine such stocks featured among the top 10 weekly gainers, with price increases ranging from about 27 per cent to nearly 48 per cent, raising questions about possible manipulation.
Overall market breadth remained positive. Of the 389 issues traded on the DSE, 231 advanced, 141 declined and 17 were unchanged. Most major sectors closed higher, led by engineering stocks, followed by banking, pharmaceuticals, food and power.
BRAC Bank topped the turnover chart, with shares worth Tk 856 million traded, ahead of Asiatic Laboratories, Islami Bank, Dominage Steel and City Bank.
The Chittagong Stock Exchange also ended the week on a firm note. Its All Shares Price Index rose 262 points to 14,731, while the Selective Categories Index gained 158 points to 9,122. Turnover at the port city bourse stood at Tk 293 million, with 7.88 million shares and mutual fund units traded.
