DSEX rally continues on election optimism and strong blue-chip demand

The benchmark index of the Dhaka Stock Exchange continued its upward trend last week, supported by broad investor participation and sustained buying in undervalued blue-chip stocks. Improving sentiment around the upcoming national election encouraged selective buying across key sectors.

The market opened the week strongly, maintaining positive momentum for three consecutive sessions. Although some profit-taking appeared in the final session, buyers largely dominated, pushing the market higher by week's end. The DSEX rose 80.4 points, or 1.6%, to close at 5,234 points. Average daily turnover increased 11.2% to Tk644 crore, reflecting heightened investor activity.

Banking stocks led trading, accounting for 18.6% of total turnover, followed by pharmaceuticals at 14.8% and textiles at 9.7%. Engineering shares posted the highest weekly gains, climbing 5.7% as investors picked up stocks that were previously oversold. The banking sector added 3.8%, while mutual funds rose 3.4% on renewed buying interest.

Not all sectors fared well. General insurance fell 3.9%, life insurance dropped 2%, and telecom slid 1.5% amid profit-taking. Non-bank financial institutions saw sharp price swings, with International Leasing, Premier Leasing, FAS Finance, Peoples Leasing, and GSP Finance among the top gainers. On the downside, DBH First Mutual Fund led losses, along with Asia Pacific Insurance, Sonar Bangla Insurance, Rupali Life Insurance, and Rahim Textile.

BRAC Bank, Islami Bank, Asiatic Laboratories, Dominage Steel, and Simtex Industries were the most actively traded stocks, showing sustained interest in large-cap, fundamentally strong companies. Key contributors to the index's rise included Islami Bank, Walton, Al-Arafah Islami Bank, BRAC Bank, and Renata.

Analysts said that improving political clarity, steady participation from both institutional and retail investors, and selective accumulation in blue-chip stocks supported the market's gains. While short-term volatility from profit-taking may continue, the overall trend appears constructive as long as macroeconomic and political conditions remain stable.