Stocks extend rally for fourth straight week

Infographic: TBS

Stocks gained for the fourth consecutive week, driven by increased investor participation, particularly in large-cap stocks that are currently trading at attractive valuations.

During the week, the benchmark DSEX index of the Dhaka Stock Exchange (DSE) rose by 1.27%, or 61 points, to close at 4,894 — the highest level in 34 trading days. The blue-chip DS30 index also advanced 16 points to settle at 1,836.

Out of the total traded securities, 257 issues advanced, 103 declined, and 36 remained unchanged, reflecting broad-based market optimism.

Market capitalisation at the DSE increased by Tk4,440 crore over the week, reaching Tk6.66 lakh crore.

Investor activity also saw a notable improvement. The average daily turnover rose by 34% to Tk486 crore, compared to Tk362 crore in the previous week — a sign of renewed buying interest in the market.

Shanta Securities, in its weekly market commentary, said that market movement last week was driven by positive changes in the market cap of bank, engineering, and non-bank financial institutions (NBFI) scrips amid negative changes in the market cap of miscellaneous, telecommunication, and cement scrips.

According to BRAC EPL Stock Brokerage, the market traded for four sessions last week, showing a generally positive trend despite minor fluctuations.

The week began on a positive note with the DSEX gaining 0.14% on Sunday. However, the market dipped slightly by 0.03% on Monday before rebounding with stronger gains of 0.56% on Wednesday and 0.59% on Thursday.

Most financial sectors delivered robust performances. The banking sector led the rally, posting a weekly gain of 6.30%, followed by NBFIs with 4.30%, mutual funds with 3.44%, and general insurance with 2.48%, according to the brokerage.

Meanwhile, non-financial sectors showed mixed results. The engineering sector saw the highest gain of 1.45%, followed by fuel and power with 1.30%, and food and allied with 0.88%. In contrast, the telecommunications sector posted the highest loss of 0.82%, followed by pharmaceuticals, which edged down by 0.11%.

EBL Securities said in its weekly market commentary, the benchmark index of the capital bourse extended its recovery for the fourth consecutive week, driven largely by a sharp rally in bank stocks, the largest sector by capitalisation, fueled by renewed confidence following regulatory measures such as the central bank's decision to merge six troubled Islamic banks.

The trading floor witnessed buying pressure throughout the week, driven by quarter-end portfolio rebalancing activities, while positive macroeconomic developments, such as the recovery of foreign exchange reserves and robust remittance inflows, further boosted investor confidence and helped sustain the prevailing upward momentum in the market, it added.

BRAC Bank was the top-traded stock, followed by Lovello Ice Cream, Beach Hatchery, and Agni Systems.

Islami Bank led the gainers' list as its share price jumped by 31.25% to reach Tk44.10, which was followed by SEML Lecture Mutual Fund, which rose 20.72% to Tk13.40 and Rupali Bank, which gained 20% to reach Tk21.

On the other end, Berger Paints was the top loser, dropping 11.34% to Tk1,539.60, mainly due to the rights share adjustment following the record date.