DSEX reclaims 5,800-mark after 22-month as reform windfalls fuel investor optimism
PM’s 17-point reform agenda boosts investor confidence, extends market rally, experts say
The country's premier bourse orchestrated a robust rally last week as the benchmark index successfully reclaimed the psychological threshold of 5,800 points, marking its highest level in nearly two years.
Buoyed by high-level political commitments toward capital market development and the prospect of significant regulatory easing, an aggressive buying spree by investors added approximately Tk6,000 crore to the total market capitalisation of the Dhaka Stock Exchange (DSE), said market participants.
The DSEX, the broad index of the Dhaka bourse, gained 60 points or 1.04% over the five trading sessions to settle at 5,804. This is the first time the index has closed above this level since September 2024.
The blue-chip segment also mirrored this upbeat sentiment, with the DS30 index – comprising fundamentally strong companies – advancing by 15 points to settle at 2,177.
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The week's trading reflected a dominant bullish sentiment, as 251 issues managed to post gains against 122 that declined, while 15 remained unchanged.
The primary catalyst for this sustained upward momentum was a dual dose of optimism from the highest levels of government and the regulator. Investor conviction was significantly restored after Prime Minister Tarique Rahman unveiled a comprehensive 17-point capital market reform agenda in parliament. Market participants perceived this move as a definitive signal that the government is prioritising the stability and growth of the financial sector, according to the market insiders.
Simultaneously, sentiment was further bolstered by reports that the newly appointed Chairman of the Bangladesh Securities and Exchange Commission (BSEC), Masud Khan, plans to overhaul and simplify margin loan regulations within the next fortnight. Investors expect these revisions to increase the liquidity flow and make trading more accessible for retail participants.
According to the weekly market review by EBL Securities, the indices maintained a positive trajectory for most of the week, despite a brief corrective phase mid-week. While a bout of profit-taking in recently appreciated blue-chip scrips caused a slight dip in the middle of the week, the downside was effectively checked by selective buying in momentum-driven stocks. Sentiment recovered fully in the final session as investors reacted positively to the reaffirmed policy commitments, allowing the index to finish the week higher.
Sheltech Brokerage Limited noted in its weekly review that the market's performance was largely shaped by this persistent buying interest. Although selling pressure intensified during the mid-week sessions as traders moved to lock in short-term gains, the resurgence of buyers following the prime minister's announcement and the BSEC Chairman's reform roadmap enabled the benchmark index to extend its winning streak.
The brokerage observed that while geopolitical uncertainties remain a background concern, the focus has shifted firmly toward domestic structural improvements.
Market participation remained healthy throughout the week, even though the daily average turnover saw a marginal decline of 3.49%, settling at Tk1,383 crore compared to the previous week's Tk1,433 crore.
Sector-wise participation showed that the textile sector was the most active, accounting for 18.3% of the total turnover, followed by general insurance at 11.9% and pharmaceuticals at 10.1%.
In terms of returns, the travel and leisure sector emerged as the top gainer with a 12.3% surge, followed by the jute sector at 6.3% and mutual funds at 5.6%.
In the individual scrip segment, Usmania Glass led the gainers' chart with a staggering 38.7% price appreciation, followed by Emerald Oil, which jumped 36.5%, and Renwick Jajneswar, which rose by 32.6%. Other notable performers included CAPM IBBL Mutual Fund and Phoenix Finance First Mutual Fund.
On the liquidity front, Malek Spinning, Beximco Pharmaceuticals, ITC, Beximco Limited, and BRAC Bank remained the most traded stocks, indicating sustained interest in both manufacturing and high-cap banking entities.
Conversely, the losers' list was dominated by several non-bank financial institutions and textile firms. FAS Finance faced the steepest decline, shedding 14.3% of its value, followed by Intech at 13.9% and Dulamia Cotton at 9.6%.
