Dhaka stocks regain fuel on US-Iran ceasefire

The stock market witnessed a big jump on Wednesday, buoyed by investor optimism following the announcement of a two-week ceasefire deal between the United States and Iran.
The breakthrough came after last-minute diplomatic efforts on Tuesday helped defuse escalating tensions triggered by US President Donald Trump's ultimatum to Iran.
Market analysts said the easing of geopolitical tensions-particularly the temporary reopening of the Strait of Hormuz-restored investor confidence and sparked fresh buying across sectors.
The market index tracked a firm upward trajectory from the outset of the session, with predominant buying interest, while investor participation strengthened steadily as the session progressed.
Eventually, the benchmark index of the Dhaka Stock Exchange (DSE) surged 161 points, or 3.12 per cent, to close at 5,318. Over the past three sessions, the index has recovered 206 points after losing 488 points since the conflict began in late February.
According to EBL Securities, the ceasefire announcement prompted renewed accumulation of beaten-down stocks, as investors anticipated improved market momentum amid easing global uncertainty.
Md Sajedul Islam, a DSE director, said the development triggered a relief rally, as investors welcomed the possible resumption of oil and gas flows through the Strait of Hormuz.
The ceasefire agreement between the US-Israel alliance and Iran, along with the reopening of the Strait of Hormuz, marks a significant step back from a potentially broader conflict, he said.
Market operators said both general and institutional investors remained active on the trading floor and injected fresh funds into blue-chip stocks, which had fallen to attractive price levels. All blue-chip stocks -- except for Fine Foods -- saw price appreciation.
The ceasefire announcement also sent global equity markets rallying on Wednesday.
South Korea's Kospi jumped 7.5 per cent, Japan's Nikkei rose 5.4 per cent, Hong Kong gained 2.8 per cent, while China's CSI 300 advanced 3.5 per cent.
Meanwhile, global oil prices fell sharply. Brent crude dropped more than 15 per cent to $92.82 per barrel, marking the steepest single-day percentage decline since March 2020 during the Covid-19 pandemic.
Despite the fall, oil prices remain elevated compared to pre-war levels of around $70 per barrel recorded before February 28.
Analysts said the decline reflects relief in energy markets, as nearly 1,000 oil and gas tankers stranded in the Gulf since late February are expected to resume movement through the Strait of Hormuz during the ceasefire period.
Back at the DSE, the DS30 index, comprising blue-chip stocks, rose 54 points to 2,260, while the DSES index, representing Shariah-compliant securities, gained 30 points to 1,076.
Blue-chip stocks-including BRAC Bank, Islami Bank, Square Pharmaceuticals, Pubali Bank, and Beximco Pharmaceuticals-played a significant role in the market rally, jointly accounting for nearly one-third of the index gain.
Market turnover also rebounded strongly, with total transactions nearing Tk 10 billion, up 66 per cent from the previous session.
Market breadth remained overwhelmingly positive, as 367 issues advanced, 15 declined, and 11 remained unchanged out of 393 traded securities on the DSE.
All sectors posted gains. The banking sector saw the highest gain of 4.07 per cent, followed by telecommunication, non-bank financial institutions, engineering, pharma, power, and food.
The Chittagong Stock Exchange (CSE) also closed sharply higher. The CASPI index climbed 328 points to 14,818, while the CSCX index rose 192 points to 9,059.

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