Written by The Banking Post
Dhaka stocks staged a strong rally on Wednesday, driven by renewed investor confidence after a two-week ceasefire between the United States and Iran eased geopolitical tensions.
The benchmark index of the Dhaka Stock Exchange (DSE) climbed 161 points, or 3.12 per cent, to close at 5,318, extending a recovery that has seen the market regain 206 points over the past three sessions.
The rally followed weeks of volatility triggered by Middle East tensions, with the ceasefire and the reopening of the Strait of Hormuz raising hopes of stabilised energy supplies and improved global conditions.
Analysts said the development prompted investors to return to the market, snapping up undervalued stocks. “The ceasefire has triggered a relief rally, with expectations of improved oil and gas flows boosting confidence,” said Md Sajedul Islam.
Brokerage insights echoed the trend, noting that investors accumulated beaten-down shares in anticipation of stronger market momentum as uncertainty eased.
The gains were broad-based, with strong participation from both retail and institutional investors. Blue-chip stocks led the rally, with major names such as BRAC Bank, Islami Bank, Square Pharmaceuticals, Pubali Bank and Beximco Pharmaceuticals contributing nearly one-third of the index rise.
All sectors closed in positive territory, led by banking, followed by telecommunications, non-bank financial institutions, engineering, pharmaceuticals, power, and food.
Market activity also rebounded sharply. Turnover surged nearly 66 per cent to around Tk 10 billion, reflecting renewed trading interest.
Market breadth remained overwhelmingly positive, with 367 stocks advancing, 15 declining, and 11 remaining unchanged out of 393 traded issues.
The upbeat sentiment mirrored global trends. Major Asian indices posted strong gains, while oil prices dropped sharply—Brent crude falling more than 15 per cent—as energy markets reacted to expectations of resumed shipping through the Strait of Hormuz.
The Chittagong Stock Exchange (CSE) also recorded a strong session, with its CASPI index rising 328 points and the CSCX index gaining 192 points.
Market observers said the rally underscores how quickly sentiment can shift, with easing geopolitical risks encouraging fresh capital inflows and restoring confidence in the equities market.
