DSE gains 36 points as budget optimism lifts investor sentiment

The stock market extended its gains today (9 June) after a brief consolidation phase, driven by investor optimism over potential market-friendly measures in the upcoming national budget.

The benchmark DSEX index at the Dhaka Stock Exchange (DSE) rose 36 points to 5,519, while turnover jumped 29% to a multi-week high of Tk1,387 crore.

Market analysts attributed the rally to expectations of fiscal policies aimed at stimulating private sector growth and boosting investor confidence. According to EBL Securities, strong demand for attractively valued stocks helped sustain the upward momentum, outweighing concerns over the withdrawal of floor prices from two heavyweight stocks – Beximco Limited and Islami Bank.

Market breadth remained firmly positive, with 246 stocks advancing, 100 declining and 51 remaining unchanged.

The insurance sector dominated trading activity, with general insurance stocks accounting for 24.4% of total turnover. Engineering and pharmaceuticals contributed 11.8% and 9.4%, respectively.

Among sectors, services posted the highest gain at 4.4%, followed by non-bank financial institutions and general insurance. In contrast, the miscellaneous sector fell 4.4%, largely due to a sharp decline in Beximco after the removal of its floor price. Cement and food sectors also posted marginal losses.

BD Finance topped the gainers, hitting the 10% upper circuit limit, followed by Shyampur Sugar, Peoples Insurance and Dulamia Cotton.

Beximco Limited and Islami Bank, however, fell 9.99% and 9.81%, respectively, after the floor price was withdrawn, both hitting their lower circuit limits. Despite the declines, the broader market remained resilient.

At the Chittagong Stock Exchange (CSE), the CSCX index edged up 0.83 points, and the CASPI gained 3 points. Turnover, however, fell 45% to Tk23.72 crore.