DSE market cap crosses Tk7 lakh crore after three months

DS30 index gains 1 point to settle at 2,192.

Infographic: TBS

The total market capitalisation of the Dhaka Stock Exchange (DSE) crossed the Tk7 lakh crore mark today (6 July) for the first time in more than three months, signalling a continued recovery in investor confidence amid sustained gains in the country’s stock market.

The market capitalisation of the country’s premier bourse rose to over Tk7 lakh crore, the highest level since 16 March, when it stood at Tk7.06 lakh crore. The milestone comes as the benchmark DSEX index has extended its recent rally, supported by expectations of market-friendly regulatory reforms and a series of policy initiatives aimed at strengthening the capital market, according to analysts.

They said reclaiming the Tk7 lakh crore threshold carries strong psychological significance, reflecting a rebound in the overall value of listed companies as investors continue to accumulate fundamentally strong blue-chip and large-cap stocks after a prolonged bearish spell.

The DSEX advanced 12 points, or 0.22%, to close at 5,799 today, hovering just below the key 5,800-point resistance level. The blue-chip DS30 index also edged up one point to settle at 2,192.

Market breadth remained slightly positive, with 166 issues advancing, 155 declining and 71 remaining unchanged.

Despite the gains, trading activity moderated. Daily turnover declined 7% to Tk1,416 crore from the previous session, indicating some investors opted to book profits following the market’s recent rally.

According to Sheltech Brokerage Limited’s daily market review, selective buying in heavyweight and fundamentally strong stocks continued to drive the market higher.

The brokerage said optimism over recent policy measures aimed at deepening the capital market and improving transparency supported investor sentiment. Although profit-taking emerged midway through the trading session, sustained buying interest in selected large-cap stocks outweighed the selling pressure, allowing the benchmark index to extend its winning streak.

Sector-wise, the textile sector accounted for the largest share of turnover at 16.8%, followed by insurance at 12.67% and pharmaceuticals at 12.17%.

An analysis by BRAC EPL Stock Brokerage showed that most major sectors ended in positive territory. The fuel and power sector led the gains, rising 1.08%, followed by telecommunications, which added 0.63%, and food and allied, up 0.57%.

The non-bank financial institution (NBFI) sector was the day’s worst performer, slipping 0.25% as investors remained cautious over the sector’s ongoing liquidity concerns.

The positive momentum also extended to the Chittagong Stock Exchange (CSE). The Selective Categories’ Index (CSCX) climbed 42 points to 9,488, while the All Share Price Index (CASPI) gained 73 points to close at 15,489. However, turnover at the port city bourse plunged 75% to Tk16.59 crore.

Source: The Business Standard