Stocks Extend Rally on Election Clarity, Lower Yields

Market adds Tk 102b in a week as blue-chip shares fuel optimism

Aug 30, 2025 2 min read

Stocks rallied for the second consecutive week, buoyed by growing investor confidence over the announced election roadmap and positive macroeconomic cues. The DSEX benchmark index of the Dhaka Stock Exchange (DSE) climbed 143 points or 2.66% to close at 5,518, adding a total of 168 points in two weeks.

Investor confidence rebounds

Analysts said investors rushed to well-performing and attractively valued stocks, while falling yields on government securities created further room for equities. Yields on treasury instruments have been declining for three straight months, sparking optimism over softer money market rates.

“When interest rates fall, the equity market gets a boost,” said a leading stockbroker, noting that the Election Commission’s poll roadmap also boosted sentiment.

Market turnover jumps

Market participation was robust, with weekly turnover soaring to Tk 57.3 billion, up from Tk 45.36 billion in the previous week. Daily turnover averaged Tk 11.5 billion, up 26% week-on-week, with activity led by textiles (14.5% of total turnover), pharma (14.4%), and banking (9%).

Gainers lead, junk stocks raise concern

Out of 396 traded issues, 268 advanced, 105 declined, and 23 closed flat. Major sectors posted gains, with life insurance stocks jumping 10.2%, followed by power (3.75%), pharmaceuticals (2.57%), telecom (2.07%), and banking (1.71%).

Blue-chip counters, particularly banks and pharmaceuticals, drove the rally. Selective stocks — including BRAC Bank, Beacon Pharma, City Bank, Renata, and LafargeHolcim — together contributed 42 points to the DSEX.

However, the sharp rise of weak-performing companies raised eyebrows. Progressive Life Insurance, Zahintex Industries, and several ‘B’ category stocks featured among the top gainers. Information Services Network, despite reporting losses, jumped 45.6%, topping the week’s gainer list.

Weekly sector snapshot

City Bank was the most-traded stock with Tk 1.45 billion turnover.
Other heavy trades included Malek Spinning Mills, Bangladesh Shipping Corporation, Sonali Paper, and Beximco Pharma.
The DSE market cap expanded by Tk 102 billion over the week.