Dhaka stocks turnover breaks past Tk 11bn as US tariff cut lifts textile stocks

A strong rally in textile stocks has lifted turnover at Dhaka Stock Exchange (DSE) to Tk 11.37 billion after the key index crossed 5,500 points to smash past a 10-month ceiling.

On Sunday, the leap was boosted by a surge in textile stocks following a US decision to cut import tariffs on Bangladeshi goods.

Starting the day at 5,443 points, the DSEX benchmark index crossed the 5,500 mark within 15 minutes of trading and closed at 5,536, recording a gain of 92.72 points from the previous session.

The index had last exceeded 5,500 on Oct 1, 2023, when it hit 5,586 points before dropping below the threshold the following day.

Investor sentiment was buoyed after the United States, following a three-month negotiation process, reduced the average import duty on Bangladeshi goods from 35 percent to a flat 20 percent, added on top of the previous 15 percent rate.

Textile shares, which account for 85 percent of Bangladesh’s annual $8 billion apparel exports to the US, reacted strongly.

Among 58 listed textile companies, 54 percent saw price increases. Trading turnover in the sector nearly tripled to Tk 1.49 billion, up from the typical Tk 400–600 million range.

Malek Spinning Mill ranked fourth among the day's top gainers. The anticipation of higher exports played a key role in drawing investors to the sector.

This rally also reflects the broader recovery that began after the political transition in August 2024, when the Awami League government fell in the face of a student-led mass movement.

The index climbed to 6,015 points on Aug 11, then stayed above 5,500 for around six weeks before entering a prolonged slump. For most of the last 13 and a half months, it traded below 5,500.

Reform measures following the government’s fall, including implementation of task force recommendations, actions against manipulation, and stronger enforcement, began showing results in the market from late June.

The DSE’s total turnover on Sunday included Tk 337.9 million from block trades. The previous day’s turnover was Tk 10.63 billion. The most recent higher turnover was on Aug 14 last year, reaching Tk 12.44 billion.

Out of 398 stocks traded, 218 advanced, 122 declined, and 58 remained unchanged.

The banking sector led in turnover with Tk 2.86 billion, significantly above its usual daily range of Tk 600–700 million. The pharmaceutical sector followed with Tk 1.26 billion, and the textile sector placed third.

Top gainers based on closing prices included Standard Bank, Bangladesh Submarine Cables, and Malek Spinning. Malek’s share price rose 9 percent to Tk 29, up from Tk 26.60 the day before.

SEML Lecture Equity Management Fund, Hami Industries (formerly Imam Button), and Asia Insurance were the steepest losers at close.