The benchmark index of the Dhaka Stock Exchange (DSE) extended its rally for a sixth consecutive week, buoyed by sustained buying in banking stocks amid renewed investor optimism.
Market analysts attributed the continued upward trend to broad-based investor participation, supported by expectations of post-election political stability and signs of macroeconomic recovery.
Investors are also anticipating changes in the leadership of the Bangladesh Securities and Exchange Commission (BSEC), which many believe could help restore confidence in the market.
"The investors are anticipating major changes in the top positions at the securities regulator, which may boost their confidence," said Md Sajedul Islam, a director of the DSE.
Many investors believe the current leadership of the BSEC has been unable to restore confidence and enforce market discipline effectively.
Finance Minister Amir Khosru Mahmud Chowdhury has already hinted that changes are inevitable as a new government has taken over.
Meanwhile, the government on Wednesday appointed a businessman, Md Mostaqur Rahman, as the governor of Bangladesh Bank -- the first such appointment in the country's history.
In an analysis, BRAC EPL Stock Brokerage said, "The stock market in the near term is expected to react positively to the 'Business-First' appointment."
Mr Rahman's prior association with the Chittagong Stock Exchange suggests he may be more inclined to support capital market development and improve liquidity conditions, said the brokerage house.
"We may also expect a push to move large corporate debt away from bank balance sheets and into the debt market, a move consistent with his background in capital management," the analysis said.
Such a shift could help ease concentration risks in the banking sector while strengthening capital market intermediation.
Despite criticism from various quarters over his appointment as central bank governor, the banking sector largely drove the market's gains during the week.
Many investors expect banks' earnings to improve due to post-election political stability and better macroeconomic conditions, said Sajedul Islam, who is also managing director of Shyamol Equity Management.
Investors also viewed the central bank's latest relaxation of loan rescheduling rules as favourable for the banking sector.
The week initially began on a cautious note amid emerging uncertainties related to the US tariff issue. However, market momentum soon strengthened, mainly driven by strong buying interest in banking stocks following the policy easing on loan rescheduling.
This week, four sessions closed higher while one saw modest correction.
The benchmark DSEX index finally settled the week 134 points, or 2.46 per cent, higher at 5,600, extending the rally for the sixth week in a row.
Over the past six weeks, the DSEX has gained a total of 581 points while the market-cap surged by Tk 341 billion to Tk 7.18 trillion at the end of this week.
EBL Securities, in its weekly market analysis, said the sustained investor participation throughout the week signalled underlying resilience in the broader market trend, paving broad-based price appreciation across sectors and extending the market's upward trajectory for a sixth consecutive week.
The blue-chip DS30 index, a group of 30 prominent companies, also surged 72 points to close at 2,169 while the DSES index, which represents Shariah-based companies, climbed 21 points to 1,116.
The price gain of selective blue-chip stocks such as BRAC Bank, City Bank, Beximco Pharma, Eastern Bank and Robi Axiata largely contributed to the market surge. These five stocks accounted for a 58-point rise in the DSEX.
BRAC Bank alone added more than 19-point to the prime index as the bank's stock jumped 4.8 per cent during the week.
City Bank accounted for 17.1 points rise in the major index, followed by Beximco Pharma, Eastern Bank and Robi.
Market participation, however, remained subdued, as total market turnover stood at Tk 36.24 billion this week as against Tk 52.5 billion in the week before.
Accordingly, the average daily turnover stood at Tk 7.25 billion, a 31 per cent drop from the previous week's average of Tk 10.5 billion.
Gainers strongly outnumbered the losers on the DSE floor. Of the 389 issues traded, 274 closed higher and 83 ended lower while 32 remained unchanged.
Major sectors exhibited positive returns. The non-bank financial institutions sector posted the highest gain of 5.2 per cent, followed by banking, pharma, telecom, engineering, power and food sectors.
City Bank became the most-traded stocks, with shares worth Tk 2.26 billion changing hands, closely followed by Olympic Industries, BRAC Bank, and Robi Axiata.
The Chittagong Stock Exchange also ended higher with its All Shares Price Index (CASPI) rising 248 points to close at 15,597, while the Selective Categories Index (CSCX) surged 158 points to 9,587.
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