Dhaka stocks extend winning streak to three session

The Dhaka Stock Exchange (DSE) extended its upward trend for the third consecutive session today, with cautious investors remaining active on both the buying and selling sides after several weeks of market correction.

The benchmark DSEX index advanced by 72 points to close at 4,847. The blue-chip DS30 index rose by 19 points to 1,890, while the Shariah index DSES added 17 points to finish at 1,018.

Turnover on the main bourse increased by 24% to Tk476 crore, compared to Tk348 crore in the previous trading session. Of the 377 issues traded, 320 advanced, 38 declined and 19 remained unchanged.

Market insiders say the recent sell-off had pushed the market into an oversold zone, leaving many fundamentally strong stocks at undervalued prices. This has encouraged cautious but opportunity-driven investors to take fresh positions in anticipation of future gains. At the same time, renewed confidence has been supported by reports that state-owned ICB, a key market maker, has received government assurances of Tk1,000 crore in support funds.

Political uncertainty surrounding the verdict involving fugitive deposed prime minister Sheikh Hasina has also eased to some extent. Investors believe this reduced tension is improving overall market sentiment. Many observers expect that the schedule for the upcoming national elections may be announced soon, which analysts say could positively influence market direction.

Speaking to TBS on condition of anonymity, several market analysts stressed that political uncertainty remains a major factor weighing on investor behaviour. They noted that a return to political stability would likely pave the way for a more sustained recovery.

Analysts also highlighted that the earnings yield of equities remains significantly more attractive than returns from treasury bills and bonds. This favourable yield gap, they said, may prompt greater fund mobilisation into stocks as investors shift away from fixed-income instruments.

In recent weeks, the market had been facing persistent downward pressure, causing investors to incur rising losses. This downturn was not driven by political uncertainty alone. The implementation of new margin loan regulations pushed many investors into forced sell-offs, which further intensified the market's decline.

People's Leasing topped the list of gainers, surging by 10.29%, followed by ML Dyeing and Pacific Denims, both rising by 10%.

On the other hand, EXIM Bank 1st Mutual Fund led the list of top losers, falling by 3.57%, followed by Libra Infusions (–3.11%) and GQ Ball Pen Industries (–2.71%).

Meanwhile, Summit Alliance Port, Taufika Foods and Lovello Ice-cream, and Sonali Paper & Board Mills were among the top ten companies in terms of turnover on the Dhaka bourse.

All large-cap sectors closed in positive territory. NBFIs posted the highest gain at 2.91%, followed by Food & Allied (2.15%), Engineering (1.96%), Banks (1.64%), Pharmaceuticals (0.84%), Telecommunication (0.40%), and Fuel & Power (0.31%).

Block trades accounted for 6.6% of the day's total market turnover. Summit Alliance Port Limited was the most actively traded stock, with a turnover of Tk18 crore, despite declining by 0.9%.

The Chittagong Stock Exchange (CSE) also ended with a positive trend. The Selective Categories Index (CSCX) rose by 85 points to settle at 8,372, while the All Share Price Index (CASPI) gained 158 points to close at 13,526.