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The domestic equity market continued its upward trajectory for the seventh straight week, with the benchmark DSEX index of the Dhaka Stock Exchange (DSE) climbing to a 10-month high, driven by renewed investor confidence and improving macroeconomic indicators.

The DSEX gained 260 points, or 5.06 per cent, during the week to close at 5,392—its highest level since October 9 last year. Over the past seven weeks, the index has recovered approximately 754 points, while the market capitalisation surged by Tk 575 billion, reaching Tk 7.08 trillion.

Investor sentiment remained resilient despite persisting concerns over unresolved US tariff issues. Market analysts attributed the bullish trend to declining inflation, appreciation of the local currency, and a shift in liquidity from fixed-income instruments to equities.

The recent fall in yields on government securities has played a pivotal role in redirecting funds into the stock market. Notably, the yield on 10-year treasury bonds dropped by 187 basis points last week to 10.48 per cent, down from nearly 13 per cent a few months earlier.

Further boosting investor optimism, the central bank reduced the reverse repo rate by 50 basis points last week, reinforcing expectations of a policy rate cut in the near future. According to a leading stockbroker, declining interest rates have encouraged high-net-worth individuals to invest in fundamentally sound equities.

Blue-chip and undervalued stocks remained at the forefront of the buying spree, supported by attractive valuations and strong fundamentals. This resulted in the highest single-week gain recorded so far this year, with all five trading sessions ending in positive territory.

In its weekly market commentary, EBL Securities highlighted investors’ renewed focus on selective large-cap stocks amid a favourable shift in market liquidity. Anticipation around upcoming quarterly earnings reports also fueled optimism on the trading floor.

Key market movers this week included BRAC Bank, BAT Bangladesh, Square Pharmaceuticals, Walton, Islami Bank, Prime Bank, and Grameenphone—together contributing nearly 200 points to the DSEX’s weekly rise.

Among the sectoral indices, the DS30 index, comprising blue-chip stocks, surged 153 points to 2,089, while the Shariah-compliant DSES index added 53 points to finish at 1,172.

Turnover also saw a significant uptick. Total turnover for the week stood at Tk 42.97 billion, a 26 per cent increase from Tk 34.08 billion the previous week. The average daily turnover rose to Tk 8.60 billion from Tk 6.81 billion.

The week’s fourth trading session recorded the year’s highest single-day turnover, hitting Tk 9.86 billion—reflecting strong investor participation.

The banking sector dominated the weekly turnover, accounting for 19 per cent of the total, followed by pharmaceuticals (14.8 per cent) and engineering (8.7 per cent). Food & allied stocks led the sectoral gains, advancing 8.4 per cent, primarily fueled by BAT Bangladesh. Other notable gainers included cement, non-bank financial institutions, telecom, power, and engineering stocks.

Out of 394 issues traded on the DSE, 215 advanced, 144 declined, and 35 remained unchanged.

BRAC Bank emerged as the most-traded stock of the week, with shares worth Tk 1.34 billion changing hands. It was followed by Bangladesh Shipping Corporation, BAT Bangladesh, and Khan Brothers PP Woven Bag Industries.

The Chittagong Stock Exchange (CSE) mirrored the DSE’s rally, with the All Share Price Index (CASPI) soaring 684 points to close at 15,013 and the Selective Categories Index (CSCX) advancing 450 points to 9,194.

As the market continues to gain ground, analysts suggest that sustained macroeconomic recovery, declining interest rates, and robust corporate performance may further strengthen the market momentum in the coming weeks.