Stocks maintain upward momentum, boosting investor confidence
In the week’s final trading session, daily turnover dropped by 3.4% to Tk952 crore, down from Tk987 crore in the previous session.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) extended its bullish run for the eighth consecutive session, buoyed by growing clarity surrounding the upcoming national election and signs of improvement in the overall political and economic environment.
Amid this continued momentum, investors are gradually regaining confidence in undervalued yet promising stocks.
Today (24 July), the key DSEX index gained a total of 331 points over the last eight sessions, settling at 5,392 points. Blue-chip stocks led the rally, with the DS30 index rising by 3 points to 2,090. However, the Shariah index declined by 6 points, closing at 1,173.
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In the week's final trading session, daily turnover dropped by 3.4% to Tk952 crore, down from Tk987 crore in the previous session.
Market insiders say renewed appetite for large-cap stocks, along with improved sentiment regarding the macroeconomic outlook, helped drive the rally. Liquidity is gradually improving, and institutional participation is picking up, especially in bank and telecom stocks, according to a senior analyst at a leading brokerage house.
As DSEX regains momentum, market watchers are closely monitoring whether the benchmark can sustain this upward trajectory and reset the year's high in the coming sessions.
Among 398 traded issues, 161 advanced, 171 declined, and 66 remained unchanged.
The Dhaka stock market is experiencing a strong rebound, supported by easing political uncertainty, improving macroeconomic indicators, and declining government bond yields.
Investors' renewed confidence is evident in the rising turnover – from Tk300 crore to over Tk900 crore – and increased interest in undervalued, fundamentally strong stocks.
Stability in foreign exchange reserves and the government's decision to merge weak banks have further boosted market sentiment.
Experts believe the uptrend may continue, although some profit-taking is expected. However, they emphasise the need for proper market reforms and an increased supply of quality shares to maintain momentum and ensure a balanced, sustainable recovery.
