DSEX jumps 85 points as central bank policy fuels market rally
DSEX up 1.55% to 5,553 on strong banking stock buying
The Dhaka stock market rebounded strongly on the back of fresh policy support from the central bank, with investors cheering the relaxation of down payment requirements for loan rescheduling amid ongoing stress in the banking sector.
The benchmark DSEX of the Dhaka Stock Exchange (DSE) jumped 85 points, or 1.55%, to close at 5,553, snapping its recent subdued trend.
The blue-chip DS30 index also rose 33 points to 2,137, reflecting broad-based gains as 347 issues advanced, 21 declined, and two remained unchanged.
Market capitalisation increased by Tk5,280 crore to Tk7.16 lakh crore, signalling renewed investor confidence, while turnover climbed 26% to Tk718 crore, indicating improved participation across sectors.
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According to EBL Securities, the market momentum reverted to a positive trajectory following recent corrections, after election-driven optimism had cooled.
Buying in banking stocks primarily drove the rally, as investors viewed the central bank's latest move to ease loan rescheduling rules as a favourable step to manage rising non-performing loans in the sector.
The market opened on a strong footing, gaining nearly 80 points within the first half hour of trading, with predominant buying interest in large-cap stocks setting the tone for the session. Confidence returned gradually, prompting investors to accumulate shares across sectors, reflecting perceived strength in underlying market momentum.
Banking stocks led the turnover chart, with City Bank and BRAC Bank among the most actively traded.
Other top turnover contributors included Summit Alliance Port Limited, Khan Brothers PP Woven Bag Industries, and Olympic Industries.
Market insiders said the rally was further supported by a recent 18% cut in furnace oil prices by the Bangladesh Energy Regulatory Commission, expected to reduce electricity generation and factory overhead costs, particularly benefiting manufacturing companies.
Investors were also encouraged by circulating speculation about potential changes in top positions at the stock market regulator, adding to market optimism.
Among the day's top gainers were RSRM Steel, Midas Finance, and LR Global Mutual Fund One, each rising 10%, followed by Alif Manufacturing and Energypac Power with notable advances.
On the losing side, Meghna Cement fell 8.3%, while Bata Shoe, Zeal Bangla Sugar, Standard Bank, and ICB AMCL First Agrani Bank Mutual Fund posted modest declines.
