Weekly market update: DSE rebounds on political clarity and investor optimism

Business Report :

The benchmark equity index of the Dhaka Stock Exchange (DSE) rebounded last week, fueled by investor optimism following growing political clarity around the upcoming national elections. Analysts say the announcement of the election timeline and easing political tensions encouraged investors to accumulate previously beaten-down stocks.

A major development boosting market sentiment was the return of Acting BNP Chairman Tarique Rahman from London after 17 years in exile. Rahman’s homecoming is expected to positively influence Bangladesh’s political landscape, easing investor concerns and potentially revitalizing stalled economic reforms.

Saiful Islam, president of the DSE Brokers Association, said, “If stock investors believe that political tensions are easing, it alone can improve liquidity and risk appetite.” Analysts also highlighted that both local and foreign investors are likely to see Rahman’s return as a positive signal for stability and business confidence.

The DSEX index rose 52 points or 1.08 per cent to 4,883, recovering from a 132-point decline the previous week caused by political unrest. The blue-chip DS30 gained 23 points to 1,882, while the Shariah-compliant DSES added 8 points to close at 1,008.
Analysts noted that bargain hunters actively seized opportunities in oversold stocks. The price surge of blue-chip stocks including Eastern Bank, BRAC Bank, Beacon Pharma, City Bank, and Bangladesh Shipping Corporation contributed 15 points to the DSEX.
Overall market liquidity remained subdued, with total turnover at Tk 14.35 billion, down from Tk 15.50 billion. Investors were most active in textiles (18percent), followed by food (12 percent) and engineering (11 percent).
The Chittagong Stock Exchange also recovered, with CASPI rising 18 points to 13,642 and CSCX gaining 5 points to 8,409.