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Dhaka, July 19, 2025 — The Dhaka Stock Exchange (DSE) extended its rally for the sixth consecutive week, with the benchmark index DSEX climbing to a three-month high, driven by robust investor confidence ahead of the upcoming earnings and dividend declarations.

The DSEX gained 64 points, or 1.27 per cent, to close the week at 5,132 points—its highest level since April 15. The continued uptrend comes as a response to improving macroeconomic indicators, including a strengthening local currency and a rate cut by the Bangladesh Bank, analysts said.

In total, the DSEX has added 494 points over six straight weeks, while the market capitalisation surged by Tk 370 billion, reaching Tk 6.87 trillion.

Policy Shifts Fuel Market Optimism

The Bangladesh Bank’s decision this week to reduce the reverse repo rate (Standing Deposit Facility Rate) by 50 basis points to 8 per cent significantly boosted investor sentiment. Simultaneously, the appreciation of the Bangladeshi Taka against the US dollar provided further confidence to the market.

Despite a mild three-session correction early in the week due to profit booking in select sectors, the market bounced back strongly following the central bank’s announcement.

“The bullish momentum was reinforced by expectations of a forthcoming cut in the main policy rate and indications of easing inflation,” said a market commentary by EBL Securities.

Blue-Chips Drive the Rally

The rally was fueled by gains in heavyweight stocks such as BRAC Bank, Square Pharmaceuticals, IDLC Finance, LafargeHolcim Bangladesh, and Beximco Pharma—which together accounted for nearly half of the week’s index gains.

The DS30 Index, representing blue-chip companies, rose 28 points to close at 1,937, while the DSES Index, which tracks Shariah-compliant stocks, added 19 points to finish at 1,120.

Turnover Surges to Year’s Peak

The DSE also witnessed its highest single-day turnover of the year at Tk 7.90 billion during the last trading session of the week. Total turnover for the week stood at Tk 34.08 billion, up from Tk 25.45 billion the previous week. Average daily turnover rose to Tk 6.82 billion, marking a 7.15 per cent increase week-on-week.

The banking sector led the turnover chart, accounting for 13.6 per cent of weekly transactions, followed by pharmaceuticals (12 per cent) and textiles (10.7 per cent).

Among other gaining sectors, non-bank financial institutions soared by 5.4 per cent, led by Bangladesh Finance and IDLC Finance, while general insurance, power, telecom, engineering, and banking sectors also posted solid gains.

Market Breadth Strong

Market breadth was overwhelmingly positive, with 290 issues advancing, 80 declining, and 24 remaining unchanged out of the 394 issues traded.

BRAC Bank topped the turnover chart, with shares worth Tk 1.03 billion changing hands, followed by Sea Pearl Beach Resort, Khan Brothers PP Woven Bag, Midland Bank, and Beach Hatchery.

CSE Also Rallies

The Chittagong Stock Exchange (CSE) mirrored the upbeat sentiment. The CASPI Index climbed 251 points to close at 14,329, while the CSCX Index gained 146 points, ending at 8,744 points.

Despite lingering concerns over proposed US tariffs on Bangladeshi exports, investors appear to be focusing on positive domestic cues, including monetary policy shifts and improved macroeconomic indicators—suggesting a cautiously optimistic outlook for the coming weeks.