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Stocks extended rally for the sixth straight session on Wednesday, with the key index of the Dhaka bourse surpassing the 5,000-point threshold after three months, defying worries over proposed higher-than-expected US tariff imposition.
Improving macroeconomic indicators seem to have helped offset concerns over US imposition of a 35 per cent reciprocal tariff on exports from Bangladesh, market analysts said.
"The market has been rising for the last six sessions mainly due to the growing confidence of investors on the back of an improvement in key macroeconomic indicators," said Akramul Alam, head of research at Royal Capital.
Exports grew 8.6 per cent year-on-year to $48.28 billion in the just concluded financial year despite economic headwinds while inward remittance surpassed $30 billion in FY25. Inflation also dropped to a 35-month low to 8.48 per cent in June.
Moreover, the yield rates against government securities are showing a declining trend and the government slashed the interest rates on all major savings certificates by 47 to 57 basis points last week.
Investors are also optimistic because of a return of good governance in the financial sector as the central bank has been bringing some structural changes to restore people's confidence.
"These developments inspired high net worth investors and they are taking positions in the undervalued blue chip stocks," said Mr Alam.
The market witnessed buyers' dominance throughout Wednesday's session. Investors opted to take positions in beaten-down stocks as they came down to a lucrative price level after prolonged correction.
The DSEX, the prime index of the Dhaka Stock Exchange, climbed 54 points or 1.08 per cent to settle at 5,035 as large-cap stocks surged significantly.
The DSEX gained around 200 points in the past six trading days while the market cap surged by Tk 111 billion during the time.
Large-cap and blue-chip scrips, such as Walton, National Bank, BAT Bangladesh, Eastern Bank and BRAC Bank contributed to the index rise significantly. They jointly accounted for a 14-point rise of the key index.
The blue-chip index DS30, a group of 30 prominent companies, spiked more than 19 points to 1,894 while the DSES index, which represents Shariah-based companies, rose 10 points to 1,094.
Mr Alam said the prices of fundamentally-strong stocks were rising, which was a good sign for the market, as positive macroeconomic developments and cooling geopolitical tensions helped restore investor confidence.
Along with the market index, the daily trade turnover also hit an eight-month high of Tk 6.91 billion on Wednesday, a 15 per cent increase over the day before.
Investors were mostly active in the banking sector, which accounted for 17 per cent of the day's total turnover, followed by the pharma sector (13 per cent) and food sector (10 per cent).
The market's upbeat vibe lured investors, particularly into the engineering, power, telecom, food, telecom and banking sectors.
Most of the traded issues saw price appreciation, as out of the 397 issued traded, 273 saw price hike, 78 ended lower and 46 remained unchanged on the DSE trading floor.
BRAC Bank was the most-traded stock with shares worth Tk 190 million changing hands, followed by Beach Hatchery, Midland Bank, Bangladesh Shipping Corporation, and Baraka Patenga Power.
However, low-performing stocks dominated the gainers' list, with Rahim Textile being the top gainer after a price increase by 9.96 per cent, while SEML Lecture Equity Management Fund was the worst loser, shedding 8.15 per cent.
The Chittagong Stock Exchange also ended higher, with its All Share Price Index (CASPI) gaining 130 points to 13,959 while the Selective Categories Index (CSCX) rose 74 points to 8,536.
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