Written by The Banking Post
Bangladesh’s capital market saw a robust rally on Monday, as optimism surrounding recent reform measures by the Bangladesh Bank drove buying interest, especially in bank stocks.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), surged by 82.09 points to close at 4,976 — marking its highest level in two months and extending its winning streak to a third consecutive session. The index last surpassed this mark on April 27, when it reached 4,995 points.
According to EBL Securities, bullish sentiment, particularly toward banking stocks perceived as undervalued, played a central role in lifting the market. Renewed investor confidence was also supported by macroeconomic improvements, including stronger foreign exchange reserves and easing inflation.
“The macro fundamentals look encouraging. Foreign exchange reserves have improved by nearly $10 billion, inflation has dropped to a 27-month low, and exports are rising. Meanwhile, many stocks remain undervalued — all of which are helping the market gain momentum,” said Md. Moniruzzaman, Managing Director & CEO of Prime Bank Securities.
The DS30 Index, which tracks blue-chip stocks, rose by 36 points to 1,873, while the Shariah-compliant DSES Index climbed over 15 points to finish at 1,081.
Throughout the trading session, buying interest remained strong, particularly in large-cap stocks viewed as attractively priced. Islami Bank, BRAC Bank, Beximco Pharmaceuticals, The City Bank, and Square Pharmaceuticals together contributed over 20% to the day’s increase in market capitalisation, adding around 31.1 points to the benchmark index.
Turnover — a key indicator of market activity — reached Tk 5.7 billion on Monday, up 13.3% from the previous session and the highest in recent weeks. Of the 396 issues traded on the DSE, 278 advanced, 73 declined, and 45 remained unchanged.
BRAC Bank led the turnover chart, with Tk 377.77 million worth of shares changing hands, followed by City Bank, Midland Bank, Beach Hatchery, and Square Pharmaceuticals.
By sector, banking stocks dominated turnover with a 26.7% share, followed by pharmaceuticals at 13.2% and textiles at 10.3%. Most sectors closed in positive territory, with banks gaining 3.9%, mutual funds up 2.9%, and financial institutions rising 2.2%.
Meanwhile, the Chittagong Stock Exchange (CSE) also posted strong gains. The CASPI index rose by 184.2 points to 13,812, while the CSCX index added 113 points to close at 8,446.
The rally reflects growing investor optimism that recent reforms and improving economic indicators could help sustain market momentum in the weeks ahead.
