DSEX surges 109 points as govt injects Tk1,000cr through ICB
Out of the trading stocks, 359 advanced, while 22 declined and 10 remained unchanged
The Dhaka Stock Exchange (DSE) extended its rally for the second consecutive session today (24 November), with renewed investor confidence and expectations of fresh government-backed support lifting the market from a prolonged oversold phase.
The benchmark DSEX index jumped 109 points to close at 5,025, while the blue-chip DS30 rose 43 points to 1,926. The Shariah-compliant DSES index gained 25 points to finish at 1,053.
Turnover climbed to Tk636 crore – a 65% increase from Tk386 crore in the previous session – reflecting a sharp rise in investor participation. Of the 391 traded companies, 359 advanced, 22 declined and 10 remained unchanged, signalling broad-based gains across the market.
Analysts noted that positive market breadth indicated renewed confidence among both institutional and retail investors.
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Investor sentiment received a boost after the government announced a Tk1,000 crore allocation to the state-owned Investment Corporation of Bangladesh (ICB) to help stabilise the market.
ICB Chairman Prof Abu Ahmed told The Business Standard that a new BO account had been opened to purchase shares using the fund. "After 2pm today [yesterday], some shares were bought through this account," he said.
He added that a progress report on the utilisation of the investment would be submitted to the government after three months.
The loan has been provided at 5% interest with a 10-year tenure and is restricted solely to share purchases. Prof Abu Ahmed also noted that ICB had originally sought Tk13,000 crore in government support to help stabilise the capital market.
The market had become significantly oversold following weeks of consecutive price declines. Many fundamentally strong stocks are now trading at undervalued prices, prompting cautious yet opportunity-seeking investors to take new positions in anticipation of future gains.
Market insiders noted that institutional investors have also become more active, further supporting the market's recovery. Analysts said that expectations regarding the upcoming national elections may also positively influence investor sentiment, as political clarity often encourages stronger market participation.
Several analysts, speaking on condition of anonymity, noted, "The closer the election gets, the more investors are likely to return to the market. Once political stability returns, the market is expected to gradually recover and perform better."
Analysts further highlighted that the current earning yield of equities is significantly higher than treasury bills and bonds, creating a favourable incentive for investors to shift funds into equities in the coming weeks.
Market observers noted that the recent downturn was not driven by political uncertainty alone. The introduction of new margin loan regulations forced many investors into mandatory sell-offs, intensifying price declines and adding pressure to the broader market.
Sector performance and top movers
Among the top gainers, Peoples Leasing rose 10%, followed by IFIC Bank and Ring Shine Textiles, both up 10%. On the losing side, Monospool Bangladesh fell 5.08%, Bangladesh Welding dropped 3.12% and Western Marine Shipyard declined 2.27%.
All major large-cap sectors closed higher. Non-bank financial institutions posted the highest gain at 4.08%, followed by Engineering (2.29%), Food & Allied (2.15%), Banking (2.00%), Pharmaceuticals (1.76%), Fuel & Power (1.71%) and Telecommunications (1.00%).
Block trades accounted for 5% of turnover, with Simtex Industries, up 9.9%, being the most traded stock, generating Tk20 crore.
The Chittagong Stock Exchange mirrored the upbeat mood, with the CSCX index rising 132 points to 8,564 and the CASPI gaining 234 points to close at 13,911.
