Stock prices surge in DSEX due to gains in textile and banking sectors
The Dhaka Stock Exchange (DSE) experienced a week of mixed fortunes, with the benchmark index, DSEX, reaching a 10-month high early in the week, before a slight pullback towards the end.
Last week, the DSEX gained 51 points or 0.95%, closing at 5,443. The bullish momentum was evident as 140 securities advanced, while 222 declined, and 31 remained unchanged.
Early in the week, the textile sector was a key driver of the market rally, benefiting from positive macroeconomic signs and international trade developments like the tariff reduction by the US. This boosted investor sentiment, pushing the market capitalization up to Tk7.12 lakh crore, an increase of 0.60%.
Among the sectors, textile was the biggest gainer, returning 4.1%. Southeast Bank had the second-highest gain of 20.5%. On the other hand, the banking sector showed weakness towards the end of the week, dragging the index down after the initial surge.
City Bank was the top-traded stock, contributing 5.29% to the DSE total turnover. Investors were mostly active in the banking sector, which contributed 29.7% to the DSE's total turnover.
However, the average daily turnover fell by 2.4% to Tk838 crore. The week concluded with the highest single-day turnover of the year in the final session, though exact weekly figures are not fully detailed.
Rahima Food led the gainers' list, with its share price jumping by 21.2%. On the other end, Midland Bank was the top loser, dropping 20.6%.
Mutual Fund experienced the highest loss of 5.61% last week, followed by non-bank financial institution with 2.46% loss and life insurance with 1.62% loss.
The blue-chip index DS30 rose by 24 points or 1.18%, settling at 2,114. Renewed buying interest was observed in textile scrips due to growing optimism over potential progress in resolving US tariff-related issues.
BRAC EPL Stock Brokerage reported that the market performed across five sessions last week, with a negative start on Sunday and Monday, a turnaround on Wednesday, and a positive end on Thursday.
Despite a three-session breather at the beginning of last week due to investor profit-taking, the bullish enthusiasm sparked again across the trading floor, fuelled by the ongoing quarterly earnings declaration season and portfolio rebalancing strategies.
In summary, the DSE experienced a strong rally early last week on textile sector gains and optimism, pushing market capitalization and the benchmark index up to a 10-month high, followed by a slight pullback due to banking sector weakness and profit-taking towards the end of the week.
Financial enthusiasm surged across the trading floor in the Dhaka Stock Exchange, with investors pursuing opportunities in the textile sector due to its positive performance and optimistic outlook on resolving US tariff-related issues. This contributed to a vibrant investing atmosphere, resulting in the benchmark index, DSEX, reaching a 10-month high early in the week. On the contrary, the banking sector showed weakness towards the end of the week, negatively impacting the stock market and causing a slight pullback.
