DSEX breaks past 5,200 after 3-month lull, turnover hits 8-month high

In a bullish turn reflecting rising investor confidence, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) surged by 25 points today (21 July) to close at 5,219 – breaking above the 5,200 mark for the first time in over three months.

This marks the fifth consecutive session of gains for the key index, which rose 0.49% on the day, shrugging off moderate profit-booking pressure.

The last time the DSEX crossed this level was on 10 April. It is now inching closer to its 2025 peak of 5,267, recorded on 25 February.
Investor participation also picked up, pushing daily turnover up by 11% to Tk800 crore – the highest since 5 November last year, when turnover reached Tk839 crore.

Blue-chip stocks led the charge, as the DS30 index climbed 0.91% to finish at 1,996 points. Market insiders say renewed appetite for large-cap scrips, along with improved sentiment around the macroeconomic outlook, helped drive the rally.

Liquidity is gradually improving and institutional participation is picking up, especially in bank and telecom stocks, said a senior analyst at a leading brokerage house.

As DSEX regains momentum, market watchers are keeping an eye on whether the benchmark can sustain this upward trajectory and reset the year's high in the coming sessions.

Today, among the 396 issues traded, 117 advanced, 224 declined, and 55 remained unchanged.

Large-cap stocks such as Grameenphone, BAT Bangladesh, Walton, Islami Bank, and Dutch-Bangla Bank were among the top contributors to the index gain.

BRAC Bank topped the turnover chart for the day, while Uttara Finance emerged as the top gainer. On the other hand, Express Insurance was the worst performer.

Market insiders said that the ongoing rising momentum has rekindled investors' interest in the trading floor with confident. They believe that political uncertainty is beginning to ease, key macroeconomic indicators are turning positive, and the yields on government securities are starting to decline. As a result, investors are showing renewed interest in undervalued but fundamentally strong stocks.

Akramul Alam, head of Research at Royal Capital, told TBS that the ongoing uptrend in the stock market may continue for several more sessions, although some natural profit-taking is expected.

One of the key drivers, he explained, is the declining yield on government securities, which is likely to fall further. "With stock market returns currently around 10.30%, a drop in government bond yields will make equities even more attractive to investors," he said.

Alam also pointed out that concerns over Bangladesh's foreign exchange reserves have eased, as reserves have stabilised and are gradually increasing. Additionally, the government's move to merge weak banks has boosted investor confidence.

He noted that political uncertainty ahead of the upcoming national election has diminished. At the same time, many listed companies remain undervalued, especially those following a June-closing fiscal year, which is drawing fresh investor interest. "Overall, investor sentiment has turned positive," Alam concluded.

Investor confidence is gradually returning to the stock market, as reflected in the recent surge in turnover, said Saiful Islam, president of the Dhaka Stock Brokers Association (DBA). "Turnover has increased from Tk300 crore to over Tk800 crore, which shows that investors are coming back with renewed confidence," he told TBS.

However, he emphasised that to maintain this momentum, proper market development activities must be ensured. "We need to make sure investors are not deceived or misled in any way," he added.

Saiful pointed out a key structural weakness in the market – an imbalance between demand and supply. "While investor demand is strong, the supply side, especially the flow of quality shares or IPOs, remains weak. To build a stable and balanced market, we need to strengthen the supply side," he explained.

He also attributed the market's recent rebound to increased political clarity. "One of the main reasons behind the comeback is the clear indication from the current government regarding the upcoming national election, which has reduced uncertainty," he said. "Besides, the market had reached a bottom level, so a recovery was due."

In its daily market commentary, EBL Securities noted that the capital bourse of the country managed to end another session in green terrain as investors remained buoyed by the resilient uptrend of the benchmark index, driven by sustained investor optimism and heightened buying interest across key sectors.

The market extended its positive momentum till the mid-session, with the intraday DSEX reaching the highest level this year at 5,273 points.  However, the upward trend lost some steam in the latter half of the session as investors opted to book their recent gains, the commentary said.

On the sectoral front, the banking sector accounted for the highest turnover yesterday, contributing 16.3% of total trade, followed closely by pharmaceuticals 16.1% and engineering 9.8%.

Market performance was mixed across sectors. Food 1.8%, engineering 1.7%, and telecom 1.7% posted the highest positive returns. In contrast, textile 1.4%, life insurance 1.3%, and paper 1.2% recorded the most significant corrections.

Meanwhile, the Chittagong Stock Exchange (CSE) also ended the day in positive territory. The Selective Categories Index (CSCX) rose by 66.6 points, while the All Share Price Index (CASPI) gained 96.9 points.