DSE rebounds strongly as election roadmap boosts investor confidence
General investors remained active on both buying and selling sides, expecting renewed market confidence. Investors primarily focused on low-paid-up, undervalued, and promising stocks.
The indices of the Dhaka Stock Exchange (DSE) rebounded strongly, recovering from a two-day natural correction, today (28 August), on the day of the national election roadmap announcement.
General investors remained active on both buying and selling sides, expecting renewed market confidence. Investors primarily focused on low-paid-up, undervalued, and promising stocks.
The benchmark index, DSEX, rose by 75 points to close at 5,518, while the blue-chip DS30 index gained 41 points to finish at 2,157. The shariah index also advanced 18 points, closing at 1,207. Market turnover increased by 16.46% to Tk1,132 crore, compared to Tk972 crore in the previous session. Out of 394 issues traded, 281 advanced, 86 declined, and 31 remained unchanged.
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Market insiders note that general investors had been waiting for political stability and a clear timeline for the upcoming national election before making fresh investments. With the interim government announcing a roadmap, investors responded positively, and the market has already begun to reflect this optimism.
Experts observe that the capital market regulator is implementing several positive reforms, some of which are already showing results. A major factor supporting equities is the declining yield on government securities, which analysts expect to fall further. With stock market returns currently above 10%, lower bond yields are making equities increasingly attractive.
Investor confidence has also been boosted by positive macroeconomic indicators. Bangladesh's foreign exchange reserves have stabilised and started to rise. The government's plan to merge weaker banks has reassured the market, and political uncertainty ahead of the national election has eased.
Many listed companies – especially those with a fiscal year ending in June – remain undervalued, attracting renewed buying interest. Analysts say that easing economic concerns, supportive policy measures, and attractive valuations are helping maintain market resilience.
All major large-cap sectors posted positive performance today. The non-banking financial institutions (NBFI) sector led the gains with a 2.66% increase, followed by the bank sector (+2.01%), the telecommunication (+1.83%), the pharmaceutical (+1.61%), the food and allied (+1.12%), the engineering (+1.08%), and the fuel and power (+0.34%). Block trades contributed 1.8% of total market turnover. Renata Ltd was the most actively traded stock, rising 8.7% with a turnover of Tk22.7 crore.
Overall, the combination of political clarity, supportive policy measures, attractive stock valuations, and declining bond yields has contributed to renewed investor confidence and a strong positive performance across the DSE today.
