Written by The Banking Post
Dhaka, July 12 — The Dhaka Stock Exchange’s benchmark index DSEX surged 3.56% this week to close at 5,068 points, marking its strongest weekly performance in nearly 10 months. The bullish momentum was largely led by robust buying in the banking sector, underpinned by macroeconomic optimism and institutional confidence.
Despite looming uncertainty around the U.S.’s proposed 35% reciprocal tariff on Bangladeshi exports, investors showed resilience. Key indicators—such as a drop in inflation to 8.48%, increased remittance inflow topping $30 billion, and steady export growth—painted a favorable outlook for the economy.
In a move signaling potential monetary easing, the government recently cut interest rates on major savings certificates by 47 to 57 basis points, while yields on government securities continued to decline. Historically, such a trend fuels interest in equity markets.
“The structural reforms initiated by the Bangladesh Bank are gradually restoring investor confidence, especially in financials,” said Akramul Alam, Head of Research at Royal Capital.
The banking sector stood out with a 4.8% weekly gain, contributing significantly to turnover activity. Leading the charge was BRAC Bank, which became the most traded stock with a turnover of Tk 1.14 billion. Other prominent performers included Midland Bank, National Bank, and Eastern Bank, reflecting growing institutional interest in undervalued financial stocks.
Turnover spiked to Tk 25.45 billion, with an average daily turnover of Tk 6.36 billion, up 31% from the previous week. The blue-chip DS30 Index gained 73 points to settle at 1,908, while the DSES Index rose 36 points to 1,101, mirroring widespread investor participation.
Out of 394 traded issues, 324 advanced, pushing market capitalization to Tk 6.77 trillion. The Chittagong Stock Exchange (CSE) also mirrored the upbeat tone, as its CASPI index jumped 450 points to 14,078.
