Written by The Banking Post
Dhaka, July 22:
Investor interest in selective blue-chip stocks propelled the Dhaka Stock Exchange (DSE) to its highest turnover in 10 months on Monday, with total transactions reaching Tk 8.61 billion—an 11% increase from the previous session.
The surge in turnover was supported by fresh investments in fundamentally strong large-cap stocks, ahead of anticipated corporate earnings disclosures and dividend announcements. Market analysts attributed the upbeat sentiment to attractive stock valuations and improving macroeconomic indicators.
The DSEX, the benchmark index of the DSE, advanced 25.64 points or 0.49% to close at 5,219—its highest level in three months. Over the past five trading sessions, the index has added 158 points, while the overall market capitalisation rose by Tk 169 billion.
“Falling inflation, rising foreign exchange reserves, steady remittance inflows, and growth in export earnings have strengthened investor confidence,” said Akramul Alam, Head of Research at Royal Capital. He noted that the recent decline in interest rates has enhanced the appeal of equities relative to fixed-income securities.
Alam also highlighted the Bangladesh Bank’s decision last week to cut the reverse repo rate by 50 basis points to 8%, signaling the possibility of a broader monetary easing cycle. “There is an inverse correlation between interest rates and equity market performance—when interest rates fall, equity valuations tend to rise,” he added.
The positive outlook aligns with a forecast by Asia Frontier Capital (AFC), which in December projected a market rebound in the latter half of 2025, driven by a decline in rates and macroeconomic stability.
On Monday, selective blue-chip stocks played a pivotal role in lifting the index. Islami Bank alone contributed 12.4 points to the DSEX as its share price surged nearly 5%, bringing its monthly gain to 36%. Other key contributors included Walton, BAT Bangladesh, Grameenphone, and Prime Bank.
The DS30 Index, which tracks the top 30 large-cap companies, gained 18 points to close at 1,996. The DSES Index, representing Shariah-compliant stocks, added 10 points to settle at 1,146.
Sector-wise, the banking sector led turnover activity, accounting for 16.3% of the day’s total, followed by pharmaceuticals (16.1%) and engineering (10%). Despite the market’s upward movement, the broader market saw more losers than gainers. Of the 396 issues traded, 224 declined, 117 advanced, and 55 remained unchanged.
BRAC Bank topped the turnover chart with shares worth Tk 246 million changing hands, followed by Khan Brothers PP Woven Bag Industries, BAT Bangladesh, Bangladesh Shipping Corporation, and City Bank.
Meanwhile, the Chittagong Stock Exchange (CSE) also posted gains, with its CASPI index rising 97 points to 14,573 and the CSCX advancing 66 points to 8,897.
