DSEX hits 3-month high as reform hopes fuel market rally

DSE market capitalisation surged by Tk11,156 crore in just five trading sessions

Logo of Dhaka Stock Exchange (DSE). Photo: Collected

The country’s premier stock market extended its post-Eid rally last week, with the benchmark DSEX index soaring 210 points to close at a three-month high of 5,475 amid growing investor optimism over planned reforms in the capital market.

The sustained upward trend added Tk11,156 crore to the market capitalisation of the Dhaka Stock Exchange (DSE) in just five trading sessions, driven largely by bargain hunting in undervalued stocks and expectations of regulatory restructuring.

According to the weekly market review by EBL Securities, the market maintained strong momentum throughout the week, with the benchmark index gaining more than 30 points in each trading session.

Despite concerns over recent hikes in fuel and electricity prices, investors remained focused on repeated political commitments to strengthening and developing the capital market, the brokerage said.

Investor sentiment received a further boost in the week’s final session following reports of long-awaited reforms to the securities commission. The prospect of appointing experienced and professional individuals to the regulator was viewed as a positive step towards improving market oversight, transparency and integrity, according to EBL Securities.

Trading activity also picked up significantly during the week. Average daily turnover surged 45% to Tk1,156 crore, reflecting renewed investor participation.

The bullish sentiment was mirrored across other market indices. The blue-chip DS30 index advanced 73 points to close at 2,068, while the SME index gained 83 points.

Market breadth remained overwhelmingly positive, with 328 issues advancing against only 49 decliners.

Among sectors, engineering, pharmaceuticals and textiles dominated turnover. Meanwhile, services, paper and cement stocks posted the highest returns, while the jute sector was the only laggard during the week.

On the gainers’ list, Sonargaon Textile and Regent Textile led the market with price appreciations of 45% and 35%, respectively.

In terms of turnover, NCC Bank, BRAC Bank and Jamuna Bank emerged as the most actively traded stocks, reflecting strong investor interest in the banking sector.

Source: The Business Standard