Written by The Banking Post
The benchmark index of the Dhaka Stock Exchange (DSE) climbed to a three-month high on Monday as investors returned from the Eid holidays with renewed optimism, betting on undervalued blue-chip stocks amid growing expectations of market reforms.
The market extended its winning streak to a sixth straight session, supported by optimism over a Tk 600 billion refinancing package, easing of foreign investment rules and government commitments to reform the financial sector and capital market.
Despite fresh increases in fuel prices and tighter cash dividend rules for banks, equities showed little sign of concern. Overnight, the government raised retail prices of octane, petrol and kerosene by Tk 5 per litre, while Bangladesh Bank announced that only banks with paid-up capital of at least Tk 20 billion would be allowed to declare cash dividends from 2026.
The DSEX, the benchmark index of the premier bourse, gained 36 points, or 0.68 percent, to close at 5,373 — its highest level in three months. The index has added around 170 points over the past six sessions.
The DS30 index, which tracks blue-chip companies, rose 14 points to 2,044, while the DSES index gained four points to close at 1,086.
“Improved domestic cues and repeated political commitments toward capital market development boosted investor confidence and encouraged investors to take positions in attractively valued stocks,” said Md Sajedul Islam, a director of the DSE.
Market participants also responded positively to recent remarks from Finance and Planning Minister Amir Khosru Mahmud Chowdhury, who pledged major reforms in the financial sector and capital market within the next two months.
Analysts said investors were increasingly accumulating fundamentally strong banking stocks, supported by expectations that the refinancing package would stimulate credit growth, industrial activity and broader economic recovery. Although not directly targeted at the stock market, the package is expected to benefit several listed sectors, including banking, textiles, engineering, pharmaceuticals and exporters.
“Banks are expected to play a central role in channelling the funds, which could strengthen lending growth and interest income,” said Akramul Alam, head of research at Royal Capital.
Banking stocks led Monday’s rally, with BRAC Bank, Pubali Bank, City Bank, NCC Bank and Jamuna Bank collectively contributing around 17 points to the benchmark index’s gains.
Turnover on the DSE rose to Tk 9.12 billion from Tk 7.78 billion in the previous session. Of the 386 issues traded, 179 advanced, 152 declined and 55 remained unchanged.
The banking sector posted the highest gain among major sectors, rising 1.4 percent, followed by engineering, power, telecommunications and pharmaceuticals. NCC Bank was the day’s most-traded stock, with shares worth Tk 441 million changing hands.
The Chittagong Stock Exchange also closed higher, with the CASPI index rising 61 points to 14,970 and the CSCX index gaining 45 points to 9,215.
