Stocks stay positive amid renewed optimism

The benchmark index of the Dhaka Stock Exchange (DSE) continued its upward trajectory this week, buoyed by an optimistic start to the first session of the New Year.

Market analysts attributed the market's optimism to growing hopes for improved political clarity in the run-up to the parliamentary elections.

They say investors' optimism over evolving political developments offered some relief to the broadly subdued market sentiment, hoping for political stability and macroeconomic recovery after the parliamentary elections.

Last year, many retail investors withdrew from the market due to frustrations over the unpredictable political situation while institutional investors remained largely inactive, contributing to the price erosion of many well-performing stocks.

In 2025, the benchmark index of DSE lost 351 points or 6.7 per cent, erasing Tk 360 billion in market capitalisation.

Due to massive price erosion, most of the blue-chip stocks, including much preferred multinationals, came down to their historical low, which inspired investors to put fresh funds.

In a major political development, Acting BNP Chairman Tarique Rahman returned to Bangladesh from London last week after 17 years in exile. His return, according to analysts, has had a positive impact on the country's political landscape, particularly given that his party is the largest opposition group.

Minhaz Mannan Emon, a director of Dhaka Stock Exchange, said the return of Tarique Rahman has already helped reduce political tension and boost public confidence in both businesses and financial markets.

"As the uncertainties surrounding the elections have been cleared along with policy certainty on the regulatory front, the market is expected to attract fresh investment," he said.

The stock market has already showed signs of a recovery, with broad-based price appreciation across a wide range of stocks. Opportunistic investors, seeking potential short-term gains, rushed back into the market, providing relief to an otherwise stagnant market sentiment.

Meanwhile, the economy has also shown signs of recovery. On Thursday, the country's gross foreign exchange reserves surpassed $33 billion for the first time in three years. While exports slowed and imports rose slightly, remittances remained buoyant, further fuelling optimism.

This week, the market saw four trading sessions as the market remained closed on Wednesday. Of them, the first two sessions closed lower while the last two ended higher.

The prime DSEX index finally settled the week 27 points or 0.55 per cent higher at 4,891. The DSEX recovered around 80 points in the past two consecutive weeks.

However, two other indices ended lower. The blue-chip DS30 index, a group of 30 prominent companies, shed 13 points to close at 1,869 while the DSES index, which represents Shariah-based companies, fell 2 points to 1,006.

Price surge of selective blue-chip stocks, including Pubali Bank, Uttara Bank, National Bank, Eastern Bank, Walton, Islami Bank and UCB, largely contributed to the index surge. These seven stocks accounted for a 20-point rise in the DSEX.

However, the market liquidity remained subdued as the total turnover stood at Tk 14.17 billion as against Tk 14.35 billion in the week before.

Accordingly, the average daily turnover stood at Tk 3.54 billion as against Tk 3.58 billion in the week before.

Investors were mostly active in the textile sector, which accounted for 17 per cent of the week's total turnover, followed by banking (14 per cent) and pharma sector (11 per cent).

Gainers outnumbered the losers, as out of 389 issues traded, 231 saw price jump while 113 others ended lower and 45 issues remained unchanged on the DSE floor.

Most of the major sectors showed positive performance. The banking sector posted the highest gain of 1.8 per cent, followed by non-bank financial institutions, power, engineering and food sectors.

City Bank became the most-traded stocks, with shares worth Tk 500 million changing hands, closely followed by Orion Infusion, Uttara Bank, Rahima Food and Sonali Paper.

The Chittagong Stock Exchange also ended higher, with its All Shares Price Index (CASPI) gaining 50 points to close at 13,692, while the Selective Categories Index (CSCX) rose 31 points to 8,440.

The port city bourse traded 6.76 million shares and mutual fund units with turnover value of Tk 414 million.

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