Stocks extend rally to sixth straight session
On the day, the DSEX increased by 33 points to close at 5,068. The DSE Shariah Index (DSES) rose by 7 points to 1,101, while the blue-chip index DS30 advanced by 14 points to settle at 1,909
The indices of the Dhaka Stock Exchange (DSE) extended their positive momentum for six consecutive sessions, as the cautious investors showed their activity on both the buying and selling sides and took positions in undervalued and promising stocks.
Over the six-day rally, the DSE's benchmark index gained a total of 230 points, helping to restore investor confidence and draw participants back to the trading floor.
On the day, the DSEX increased by 33 points to close at 5,068. The DSE Shariah Index (DSES) rose by 7 points to 1,101, while the blue-chip index DS30 advanced by 14 points to settle at 1,909.
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Turnover on the DSE surged by 1.74% to Tk679 crore, compared to Tk691 crore in the previous session. Of the 397 issues traded, 196 advanced, 128 declined, and 70 remained unchanged.
Market insiders said that the ongoing six-day rally has rekindled investors' interest in the trading floor. The ongoing six-day rally in the stock market has rekindled investor interest. Market insiders say the easing of political uncertainty, improvement in key macroeconomic indicators, and the declining yields on government securities have brought investors back to the trading floor.
They noted that Bangladesh's foreign exchange reserves have stabilized and are gradually increasing, while remittance inflows remain steady—both of which are supporting the overall economy. Additionally, yields on government securities are falling and are expected to decline further, making the stock market a more attractive option for investors.
The government's initiative to merge weak banks has sent a positive signal to the market. Moreover, political tensions surrounding the upcoming national election have eased significantly, helping restore much-needed stability in the market.
Analysts suggest that many fundamentally strong stocks remain undervalued, making them attractive for long-term investors. They also pointed out that there are optimistic expectations around the upcoming financial disclosures of companies that follow a June-closing fiscal year.
Furthermore, investors now have a clearer understanding of the ongoing capital market reforms, which is boosting confidence.
Overall, investor sentiment has shifted to a positive outlook. If current trends continue, the upward momentum in the stock market may persist in the coming days.
