Stocks rally as finance minister vows professional leadership at BSEC

The Dhaka Stock Exchange (DSE) extended its rally for a fourth consecutive session today (23 May), as investor confidence strengthened following Finance and Planning Minister Amir Khosru Mahmud Chowdhury's pledge to ensure professional and skilled leadership at key financial institutions.

Speaking at a policy symposium in the capital, Finance and Planning Minister Amir Khosru Mahmud Chowdhury announced a complete ban on political appointments in the financial sector, including the Bangladesh Securities and Exchange Commission (BSEC).

He said the government would appoint only professional and competent individuals to key regulatory positions in a bid to restore investor confidence and strengthen corporate governance.

The announcement boosted market sentiment, triggering a broad-based rally and adding significantly to market capitalisation, according to market insiders.

The benchmark DSEX index rose 64 points, or 1.22%, to close at 5,328. Over the past four trading sessions, the index has gained a cumulative 125 points.

The blue-chip DS30 index also advanced strongly, climbing 34 points to finish at 2,030.

Market breadth remained positive, with 217 issues advancing, 117 declining, and 60 remaining unchanged.

Total market capitalisation at the premier bourse increased by Tk5,400 crore in a single day, while turnover rose 4% to Tk902 crore.

The minister also said the government would prioritise improving auditing standards and financial disclosure requirements to rebuild market credibility and attract foreign institutional investors.

According to EBL Securities' daily market review, the market opened strongly from the first trading bell, supported by aggressive buying in large-cap banking and telecom stocks.

The brokerage house said expectations of meaningful reforms, early signs of domestic macroeconomic stabilisation, and easing geopolitical tensions around the Strait of Hormuz – which had earlier dampened investor risk appetite – helped sustain the rally ahead of the Eid holidays.

Banking and telecom stocks led the gains, with major index contributors including BRAC Bank, Grameenphone, Robi Axiata, Square Pharmaceuticals, and City Bank.

Sector-wise, engineering stocks dominated turnover, accounting for 15.7% of total transactions, followed by pharmaceuticals at 15.4% and general insurance at 12.9%.

The cement sector posted the highest gain, rising 3.3%, followed by services at 2.8% and banking at 2.1%. The information technology sector was the only major laggard, declining 1.9%.

Several loss-making companies also featured among the day's top gainers, indicating renewed speculative activity among some investors. Meghna Cement Mills topped the gainers' list with a 9.86% rise, followed by Emerald Oil Industries, Aramit Cement, Regent Textile Mills, and Sena Insurance.

On the losing side, Daffodil Computers shed 9.36%, followed by Premier Leasing & Finance, Apex Spinning & Knitting Mills, and CAPM BDBL Mutual Fund 01.

In terms of liquidity, Asiatic Laboratories emerged as the most traded stock, followed by NCC Bank, RD Food, Mir Akhter Hossain, and Jamuna Bank.

The upbeat mood also spilled over to the Chittagong Stock Exchange (CSE), where key indices posted sharp gains. The Selective Categories' Index (CSCX) rose 81 points to 9,131, while the All Share Price Index (CASPI) gained 138 points to close at 14,838.

However, turnover at the port city bourse fell 20% to Tk24 crore.