Stock exchange

ICB Boost Lifts DSE Past 5,000 After Three Weeks

State-backed fund injection sparks broad rally as blue-chips rebound, turnover jumps

Written by The Banking Post


The Dhaka Stock Exchange (DSE) bounced back above the 5,000-mark on Monday after three weeks of decline, powered by fresh fund injections from the Investment Corporation of Bangladesh (ICB).

The state-run investment institution began deploying new liquidity into the market after receiving Tk 10 billion in government loans at a 5 per cent interest rate for a 10-year term, with a one-year grace period.

“We have started injecting the fund into the market, particularly into fundamentally strong stocks,” said ICB Chairman Prof Abu Ahmed, after the organisation opened a separate BO account to launch the programme. He noted that ICB is currently authorised to invest only in ‘A’ category stocks with dividend yields above 5 per cent.

News of the intervention lifted investor sentiment across the trading floor, encouraging both retail and institutional players to return to beaten-down blue-chips. Analysts said bargain hunters aimed to capture short-term gains despite lingering political uncertainties.

“General investors, including institutional ones, rushed to put fresh funds into blue-chip stocks as they came down to attractive valuations after a recent correction,” said Akramul Alam, head of research at Royal Capital. He added that expectations of a favourable outcome in the legal proceedings concerning the new margin rules also helped support the rally.

All 30 blue-chip stocks saw notable price appreciation, reflecting renewed confidence. “It’s a good sign that well-performing stocks are getting investors’ attention,” Mr Alam said.

The DSEX surged 109 points, or 2.22 per cent, to 5,025—recovering 156 points in the last two sessions after a three-week slide of 409 points. The DS30 gained 43 points to 1,926, while the DSES advanced 25 points to 1,053.

Market momentum strengthened as opportunistic investors returned, capitalising on oversold stocks, according to EBL Securities. Broad-based buying pushed turnover past the Tk 6 billion mark for the first time in six weeks—rising 65 per cent to Tk 6.36 billion.

Major blue-chip names including Beximco Pharma, Islami Bank, BRAC Bank, BAT Bangladesh, Beacon Pharma, Walton, Eastern Bank and Renata collectively added 27 points to the DSEX.

The textile sector dominated turnover with 17 per cent of total trades, followed by engineering and pharmaceuticals. Of 391 issues traded, 359 advanced, 22 declined and 10 remained unchanged.

All major sectors ended positive, led by non-bank financial institutions with a 4.10 per cent gain, followed by engineering, food, banking, pharmaceuticals and power.

Simtex Industries topped the turnover chart with Tk 202 million in trades, followed by Orion Infusion, Summit Alliance Port, Anwar Galvanizing and Runner Automobiles.

The Chittagong Stock Exchange also closed sharply higher. The CASPI rose 234 points to 13,911, while the CSCX advanced 132 points to 8,564.


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