Stocks rebound as investors bet on strong corporate earnings

Stocks rebounded sharply this week, with the benchmark index recovering most of the previous week's losses as bargain hunters returned to the market amid growing optimism over corporate earnings.
Market operators said investor sentiment improved after retaliatory actions in the Middle East temporarily subsided, easing fears of a further escalation in the conflict.
Expectations of strong quarterly earnings, particularly from banks and several blue-chip companies, also prompted investors to rebuild positions, triggering broad-based buying across the market.
Meanwhile, most listed banks posted double-digit year-on-year profit growth in the first half of 2026, buoyed by higher investment income as well as increased earnings from fees and commissions.
Some of the multinational companies also posted higher profit despite prolonged inflation and rising energy costs, according to their financial statements released during the week.
A leading broker said investors took advantage of the recent price correction to accumulate fundamentally strong stocks, especially those expected to report robust earnings for the April-June quarter.
"The improving earnings outlook, coupled with relatively attractive valuations after the previous week's decline, helped restore confidence among both institutional and retail investors," said the broker.
However, many investors remained cautious over several domestic and external factors. Concerns over disruptions to gas supply, lingering geopolitical tensions in the Middle East and uncertainty surrounding the final amendment to margin loan rules prompted many investors to book profits during the week.
Of the five trading sessions during the week, three closed higher and two sessions ended lower.
The benchmark index of the Dhaka Stock Exchange (DSE) finally climbed more than 91 points or 1.57 per cent to close at 5,895 points, after shedding 96 points in the previous week.
According to EBL Securities, the market demonstrated resilience as renewed buying interest emerged in the final trading session, enabling equities to end the week on a firm positive note.
Expectations of favourable quarterly earnings from key sectors also boosted investor confidence, triggering broad-based buying across the market.
The DS30 Index, which tracks blue-chip companies, advanced 25 points to 2,217, while the Shariah-based DSES Index rose 12 points to 1,195.
Selective heavyweight stocks, including British American Tobacco Bangladesh (BATBC), Pubali Bank, Beximco Pharmaceuticals, Walton Hi-Tech Industries, and Dominage Steel Building Systems, accounted for nearly one-third of the benchmark index's weekly gain.
Trading activity also remained resilient. Total turnover on the Dhaka bourse stood at Tk 52.99 billion during the week, slightly down from Tk 53.16 billion a week earlier.
Consequently, average daily turnover dropped 0.31 per cent to Tk 10.60 billion from Tk 10.63 billion in the previous week, indicating that some investors preferred to remain cautious.
Textile sector accounted for the largest share of weekly turnover at 22.5 per cent, followed by pharmaceuticals with 12 per cent and engineering with 10.8 per cent.
Market breadth was firmly positive, with 264 issues advancing, 89 declining and 35 remaining unchanged on the prime bourse.
Dominage Steel Building Systems emerged as the week's most-traded stock with transactions worth Tk 1.86 billion. It was followed by IT Consultants, Summit Alliance Port, Fareast Knitting and Saiham Cotton.
Most sectors posted gain during the week. General insurance saw the highest gain of 8 per cent, followed by food, engineering, power, banking and pharmaceuticals.
The Chittagong Stock Exchange (CSE) also ended the week higher. Its All Share Price Index (CASPI) rose 140 points to 15,760, while the Selective Categories Index (CSCX) gained 80 points to close at 9,616.

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