Daily turnover on the Dhaka bourse crossed the Tk 14 billion mark on Sunday for the first time in more than a year, as upbeat investors poured fresh funds into well-performing stocks amid growing optimism in the market.
Turnover, a crucial indicator of the market, stood at Tk 14.42 billion on the country's premier bourse, up 8 per cent from the previous session, on the day. It was the biggest single-day transaction since August 11 last year, when the market turnover reached a record Tk 20.10 billion.
Market analysts said investors' sentiment remained resilient, bolstered by positive macroeconomic developments, notably declining yields on government securities and easing inflation in recent months.
"The yield rates on government securities have been declining over the past few months, signalling potential easing of interest rates in the money market," said Akramul Alam, head of research at Royal Capital.
The cut-off yield, generally known as the interest rate, on the 91-day T-bill came down to 10.08 per cent from 10.12 per cent, the yield on the 182-day T-bill fell to 10.13 per cent from 10.29 per cent, while the 364-day rate dropped sharply to 10.14 per cent from 10.37 per cent at Sunday's auction.
Bond yields dropped between 200 and 250 basis points over the three months to August, primarily driven by lower government borrowing demand.
On the other hand, inflation in August eased to 8.29 per cent - the lowest in three years - from 8.55 per cent in July, driven by a notable fall in non-food inflation, according to the latest data from the Bangladesh Bureau of Statistics (BBS) published on Sunday.
"These developments inspired high-net-worth investors to take positions in undervalued blue-chip stocks, defying political worries," Mr. Alam added.
He noted that the prices of fundamentally strong stocks are rising, which is a positive sign for the market as improving macroeconomic conditions have helped restore investor confidence.
On Sunday, the market witnessed positive momentum right from the start, with renewed buying interest in quality stocks perceived as attractive at current valuations.
Currently, the country's stock market price-to-earnings (P/E) ratio is hovering below 11, indicating that equities remain attractive for investment.
Among the major stocks, BRAC Bank, Robi Axiata, IPDC Finance, Grameenphone, and Best Holdings gained between 0.6 per cent and 9.7 per cent.
With robust investor participation, DSEX - the key index of the Dhaka Stock Exchange (DSE) - rose by around 22 points, or 0.39 per cent, to settle at 5,636, after losing 17 points in the previous session.
The market regained its bullish momentum with strong participation following a single-session breather, as optimism remained resilient amid macroeconomic tailwinds and a gradual easing of yields on government fixed-income securities, commented EBL Securities.
Investors' buying interest in certain June-ending stocks ahead of their upcoming corporate declarations also contributed to the market's recovery.
The blue-chip DS30 index, comprising 30 prominent companies, gained 5 points to 2,188. However, the DSES index, representing Shariah-based companies, inched down 0.61 point to 1,229.
Gainers strongly outnumbered losers, as out of 400 issues traded, 248 closed higher, 127 ended lower, and 25 remained unchanged on the DSE trading floor.
Robi Axiata became the most-traded stock with shares worth Tk 371 million changing hands, followed by Trust Islami Life Insurance, Khan Brothers, Orion Infusions, and Lovello Ice-Cream.
Rupali Life Insurance was the top gainer, soaring 9.94 per cent, while Trust Islami Life Insurance was the worst loser, shedding 9 per cent.
Major sectors showed mixed performance. Telecom, engineering, and food sectors posted gains, while banking and pharmaceuticals saw corrections.
The Chittagong Stock Exchange (CSE) also ended higher, with the CSE All Share Price Index (CASPI) gaining 23 points to settle at 15,724, while its Selective Categories Index (CSCX) rose 10 points to 9,660.
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