DSEX jumps 1.38%, hitting 11-month high on investor optimism

Dhaka stocks rallied strongly today, with the benchmark index of the Dhaka Stock Exchange (DSE) surging to its highest level in 11 months as buoyant investor sentiment and renewed optimism over the political climate drove widespread buying across major sectors.

The DSEX gained 76 points, or 1.38%, to close at 5,594 points, its strongest finish since 30 September 2024, when the index last touched 5,624. 

The rally extended the market's upward momentum to a second consecutive day, with the index adding a total of 151 points over the two sessions. The broad-based buying spree also boosted the market capitalisation by Tk15,000 crore, pushing the DSE's total value to Tk7.28 lakh crore by the end of the day.

Investor participation was also significantly stronger, with turnover rising 14% to Tk1,296 crore — the highest since 11 August 2024. A total of 201 issues advanced, 141 declined and 56 remained unchanged.

In its daily commentary, EBL Securities noted that the rally reflected a resilient capital market environment supported by invigorated investor confidence. The brokerage said optimism returned to the market following clarity on the political front after the government unveiled its election roadmap, which encouraged investors to take fresh positions in equities. 

"The bullish wave swept across the trading floor as investors continued chasing the rallies, driving price appreciations in the majority of scrips for consecutive sessions," the review added.

Large-cap stocks played a significant role in lifting the index, with BRAC Bank, Walton, BAT Bangladesh, Square Pharmaceuticals and Renata emerging as the major index pullers. 

On the sectoral front, pharmaceutical stocks accounted for the largest share of the day's turnover at 14.6%, followed by textile at 12.4% and banking at 10.5%.

Among the day's most actively traded stocks were Lovello Ice-Cream, Robi, BRAC Bank, City Bank and Orion Infusion. 

Market insiders noted that retail investors, in particular, showed renewed appetite for stocks in the banking and IT sectors, which helped sustain the upward momentum.

Sector-wise performance was largely positive. Engineering stocks led the rally with a 4.4% gain, followed by IT at 3.4% and ceramic at 3.1%. Only mutual funds and textile counters witnessed marginal corrections, slipping 0.7% and 0.1%, respectively.

The day's top gainers reflected a mix of financial institutions and manufacturing firms. Bay Leasing, National Tea and Evince Textile all rose by the maximum allowable limit of 10%, while Shyampur Sugar and Orion Pharma surged by 9.95% and 9.94%, respectively. 

In contrast, the losers' table was dominated by weaker financial institutions and small-cap stocks. Peoples Leasing dropped by 6.66%, Safko Spinning by 6.06% and Fareast Finance by 5%, while EBL First Mutual Fund and Capitec Grameen Bank Growth Fund fell 4.54% and 4.11%, respectively.

The rally on the Dhaka bourse was mirrored in the port city, where the Chittagong Stock Exchange (CSE) also closed higher. The Selective Categories Index (CSCX) advanced 140.3 points, while the All-Share Price Index (CASPI) gained 232.4 points.

Market observers noted that while the strong performance has lifted sentiment, the sustainability of the rally will depend on upcoming corporate disclosures, the pace of economic recovery, and continued political stability in the months ahead. For now, however, the return of turnover to near one-year highs suggests that confidence among investors is gradually being restored, setting the stage for potentially stronger performance in the coming weeks.