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Bangladesh’s stock market extended its recovery for a second consecutive week, driven largely by strong buying interest in banking shares amid improving political clarity ahead of the national election.

Market participants said both retail and institutional investors stayed active, channelling fresh funds into blue-chip stocks that had become attractive after the recent correction. Selective buying in low-cap stocks and sector-specific developments also added momentum.

The benchmark DSEX index rose nearly 55 points, or 1.07 percent, to close at 5,154. Over the past two weeks, the index has gained 195 points. Of the five trading sessions during the week, three closed higher, while the first and last sessions ended marginally lower.

Analysts said the market showed resilience as buyers dominated across sectors, supported by the ongoing earnings season. During the week, 60 listed companies released quarterly and half-yearly financial results, prompting investors to focus on fundamentals despite pre-election caution.

The DS30 index of blue-chip stocks advanced 24 points to 1,986, while the DSES index, representing Shariah-compliant companies, added 9 points to finish at 1,034.

Large-cap stocks led the rally, with Islami Bank, BRAC Bank, Pubali Bank, Square Pharmaceuticals and Pragati Life Insurance jointly contributing about 75 points to the DSEX. Islami Bank alone added more than 41 points as its shares surged 20 percent during the week, while BRAC Bank contributed another 15 points.

Total weekly turnover edged up to Tk 28.97 billion, from Tk 28.79 billion a week earlier. Average daily turnover rose slightly to Tk 5.79 billion. Trading activity was highest in the general insurance sector, which accounted for 17.6 percent of total turnover, followed by pharmaceuticals (14.2 percent) and banking (10.7 percent).

Most major sectors closed higher, with the banking sector gaining 4.2 percent, followed by power, telecoms, pharmaceuticals and food.

However, concerns lingered as ‘Z’ category stocks dominated the list of top weekly gainers, raising fears of speculative activity. Seven such stocks posted gains ranging from 15 percent to 60 percent during the week.

Overall market breadth remained weak, as decliners outpaced advancers. Of the 389 issues traded, 204 closed lower, 152 advanced, and 33 remained unchanged.

Among individual stocks, Square Pharmaceuticals topped the turnover chart with shares worth Tk 930 million traded, followed by Dominage Steel, Orion Infusion, Pragati Life Insurance and Asiatic Laboratories.

The Chittagong Stock Exchange also ended the week higher, with its All Shares Price Index rising 209 points to 14,469 and the Selective Categories Index gaining 135 points to 8,964. Turnover on the port city bourse stood at Tk 442 million.