Dhaka stocks surge to 9.5-month high on post-budget optimism

The country's premier bourse maintained its robust upward trajectory last week, with the benchmark index hitting a nine-and-a-half-month high as investor confidence continued to strengthen under the influence of post-budget optimism and supportive regulatory interventions. 

The benchmark DSEX index of the Dhaka Stock Exchange surged by 141 points or 2.5% to settle the week at 5,661, marking its fifth consecutive week of gains. The rally successfully pushed the index past the crucial 5,600-point threshold for the first time since late last year, reflecting a significant shift in market sentiment following repeated government commitments to capital market development.

The blue-chip segment also witnessed substantial growth, with the DS30 index gaining 70 points to close at 2,143.

This broad-based rally added approximately Tk3,400 crore to the total market capitalisation of the Dhaka bourse. While the daily average turnover saw a marginal dip to Tk1,283 crore, market participation remained resilient as investors actively accumulated attractively valued scrips across various sectors.

According to the weekly market review by EBL Securities, the week opened on a strong footing, bolstered by a buying spree in heavyweight stocks, particularly Islami Bank Bangladesh PLC. The bank's stock saw heightened interest following government-backed regulatory support aimed at alleviating its acute liquidity stress, which in turn restored confidence in the wider banking sector.

Beyond domestic cues, the easing of geopolitical tensions in the Middle East provided an additional boost to the overall risk appetite of market participants. Although intermittent profit-booking surfaced mid-week as some investors opted to lock in gains from the month-long rally, the downward pressure was quickly absorbed by bargain hunters who resumed their positions in fundamentally strong stocks, EBL Securities added.

The market was also supported by major index pullers such as Beximco Pharmaceuticals, Square Pharmaceuticals, Pubali Bank, and City Bank, which helped sustain the positive momentum despite selling pressure in other areas.

On the sectoral front, the textile sector dominated market activity, accounting for 12.8% of the total turnover, followed by general insurance at 12.1% and pharmaceuticals at 10.8%. 

In terms of returns, the information technology sector emerged as the top gainer with a 4.9% increase, closely followed by financial institutions and mutual funds. 

Conversely, the miscellaneous sector faced a staggering 15.4% decline, primarily dragged down by a sharp correction in Beximco Limited following its floor price withdrawal. The travel and jute sectors also ended the week in the red.

Individual stock performance was highlighted by Saif Powertech, which emerged as the top gainer of the week with a massive 39.7% price surge. Other notable gainers included National Feed Mill, SS Steel, and BD Thai Aluminium. On the losing side, Beximco Limited was the worst performer, shedding over 40% of its value, while Peoples Leasing and Regent Textile also recorded significant losses.