Stocks log biggest single-week gain in 10 months

The benchmark index of the Dhaka Stock Exchange (DSEX) surged 3.56 per cent this week, marking its biggest weekly gain in 10 months, as investor sentiment remained buoyant despite concerns over US tariff hikes.

The rally came amid fears surrounding the United States' proposed 35 per cent reciprocal tariff on Bangladeshi exports, which had earlier stirred anxiety in the market. However, analysts say improving macroeconomic fundamentals seem to have helped offset these concerns.

Some key macroeconomic indicators, including remittance and exports, continue to show upward momentum, while inflation dropped to 8.48 per cent in June, a 35-month low.

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.

Moreover, the yield rates against government securities are showing a declining trend while the government slashed the interest rates on all major savings certificates by 47 to 57 basis points last week, signalling potential easing of interest rates in the money market.

Usually, when the interest rate falls, the equity market gets a boost.

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 Akramul Alam, head of research at Royal Capital.

This week, the market opened with a bullish note, driven by strong performance in the banking sector, with the key index surpassing the 5,000-point threshold on the third day of the week amid strong buying pressure.

DSEX, the key index of the Dhaka bourse, settled the week 174 points or 3.56 per cent higher at 5,068, as all four trading days ended higher amid rising turnover value.

The DSEX regained around 430 points in the past five straight weeks while the market-cap surged by Tk 262 billion during the time to Tk 6.77 trillion at the end of this week.

In its weekly analysis, EBL Securities said despite lingering concerns over the proposed tariff on Bangladeshi exports, the investor sentiment remained resilient amid reform measures in the banking sector along with positive macroeconomic developments.

This week, price hikes of several large-cap stocks such as BRAC Bank, Beximco Pharma, Walton, National Bank and Eastern Bank, pulled the market index up, jointly contributing a 46-point gain to the DSEX.

The blue-chip DS30 index, a group of 30 prominent companies, jumped 73 points to 1,908 and the DSES Index, which represents Shariah-based companies, gained 36 points to 1,101.

Apparently, investor participation increased as the total turnover reached Tk 25.45 billion this week, up from Tk 19.45 billion the week before.

Subsequently, the average daily turnover jumped to Tk 6.36 billion, 31 per cent up from the previous week's figure of Tk 4.86 billion.

Investors were mostly active in the banking sector, which accounted for 18 per cent of the week's total turnover, followed by the pharma sector (13.4 per cent) and textile sector (10.4 per cent).

The market upbeat vibe continued to lure the investors to all major sectors, particularly in the banking sector, soaring 4.8 per cent, followed by engineering, non-bank financial institutions, power, and food sectors.

More than 91 per cent traded stocks saw price appreciation this week, as out of 394 issued traded, 324 closed higher, 35 ended lower and 35 issues remained unchanged on the DSE trading floor.

BRAC Bank was the most-traded stock with shares worth Tk 1.14 billion changing hands, followed by Midland Bank, Beach Hatchery, Sea Pearl Beach Hatchery and Lovello Ice-cream.

The Chittagong Stock Exchange also ended sharply higher, with its All Share Price Index (CASPI) soaring 450 points to 14,078, while the Selective Categories Index (CSCX) rose 266 points to close at 8,598.

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