Written by The Banking Post
The Dhaka Stock Exchange (DSE) witnessed a remarkable surge in turnover on Thursday, reaching Tk 10.63 billion, the highest in nearly 11 months, as investor confidence returned on the back of falling interest rates and renewed political stability ahead of national elections.
Turnover rose by 43 percent compared to the previous session, driven primarily by strong performance in blue-chip stocks and renewed interest in the banking sector, market insiders said.
The benchmark index DSEX soared by 91 points or 1.70 percent, closing at 5,443, reflecting broad-based optimism in the equity market.
According to S M Galibur Rahman, Head of Research and Strategic Planning at Shanta Securities, the recent downward trend in interest rates on fixed-income instruments has made equities more attractive to investors.
“High interest rates had previously discouraged market participation. But with declining yields on government securities, particularly the 10-year Treasury bond dropping 2.05 percentage points to 10.45% over the past month, equities are regaining their appeal,” said Rahman.
He added that the expected rise in equity yields in the coming quarter, coupled with improving political sentiment, has contributed to the market rebound.
“The improving political climate, with parties gearing up for national elections, has further bolstered investor sentiment,” he noted.
The DS30 Index, comprising blue-chip stocks, climbed 1.40 percent or 16.20 points, settling at 1,170.61, with 24 of the 30 constituents ending in positive territory.
Blue-chip firms were the top contributors to Thursday’s rally. Islami Bank led the index gainers, adding 8.8 points, followed by Pubali Bank (8.7 points), Square Pharmaceuticals (8.4 points), and British American Tobacco Bangladesh (7.5 points).
The banking sector dominated trading activity, accounting for Tk 3.85 billion in turnover — the highest among all sectors.
Trust Bank emerged as the top gainer, surging 9.90 percent to close at Tk 22.20 per share.
Conversely, Midland Bank was the session’s worst performer, shedding 9.22 percent to Tk 19.70.
Market analysts suggest that if the current trend continues, supported by stable macroeconomic conditions and political clarity, the equity market could see sustained growth in the coming months.
