Written by The Banking Post
Fundamentally strong, large‐cap names led a broad market recovery over the last month, pushing the DSEX index up 4.84% (226 points) to 4,894 and reviving turnover on the Dhaka Stock Exchange (DSE).
Market and Blue‐Chip Performance
- DSEX: +4.84% (226 pts) to 4,894
- DS30 (Top 30 Stocks): +5.09% (89 pts) to 1,836
- Weekly Turnover Surge: From Tk 2.35 billion on June 1 to Tk 5.06 billion by July 3
Key blue‐chip contributors included BRAC Bank (+5.1% last week), British American Tobacco Bangladesh, Walton Hi‐Tech Industries and Square Pharmaceuticals.
Why Blue Chips Reclaimed Leadership
- Tax‐Rebate Window: Investors raced to buy securities by June 30 to claim rebates—favouring large‐caps for liquidity and dividend yields.
- Falling Deposit Rates: Top banks cut deposit rates below 11%, prompting savers to shift funds into equities.
- Policy Support for Capital Markets: A central bank–SEC committee is drafting guidelines to channel long‐term financing through bonds and equity, reducing reliance on bank credit.
Sectoral Highlights
- Banking: +6.3% (led by AB Bank, Islami Bank Bangladesh and Prime Bank; Islami Bank surged 33% in the month)
- Non‐Bank FIs: +4.3%
- Mutual Funds: +3.4%
- General Insurance: +2.5%
Outlook
With blue‐chip scrips back in the driver’s seat and investor engagement strengthening, analysts expect the bullish trend to persist—provided macro indicators like interest rates and fiscal incentives remain supportive.
