The benchmark index of the Dhaka Stock Exchange (DSE) crossed the 5,600-point threshold this week for the first time in 10 months, driven by post-budget optimism, market-friendly fiscal measures, and easing geopolitical tensions in the Middle East.
The broad-based index, DSEX, climbed 141 points, or 2.6%, to close the week at 5,661 -- its highest level in 10 months. The milestone caps a strong five-week winning streak during which the index has surged by 356 points.
Market analysts said the market extended its winning streak as investors responded positively to a combination of tax relief, regulatory reforms and policy initiatives aimed at deepening the capital market and attracting long-term investment.
Finance Minister Amir Khosru Mahmud Chowdhury last week unveiled a series of measures in the proposed budget for FY 2027, aimed at reviving private-sector growth and promoting long-term capital market development.
The overall budget framework is supportive of the capital market, although effective implementation and continued policy support are key for sustainable development of the capital market, said Md Sajedul Islam, a director of the DSE.
Global developments further reinforced confidence. Investor sentiment improved following a ceasefire agreement between the United States and Iran and the reopening of the Strait of Hormuz, easing concerns over potential disruptions to global energy supplies.
Oil prices also continued to decline, reaching a three-month low this week amid hopes of greater stability in international energy markets.
"These developments have generated renewed optimism among investors and market participants," Mr Islam said.
Moreover, expectations surrounding the newly formed securities commission's reform agenda also helped strengthen market sentiment, as investors anticipate greater transparency, fair pricing and stronger governance, he added.
Buoyed by these factors, the week opened with strong, broad-based accumulation across the trading board.
Of the five trading sessions, four closed in positive territory, while one saw a marginal correction as investors booked profits on recently rallied stocks.
Alongside the DSEX, other key indices also posted significant gains. The DS30 index, which tracks blue-chip companies, surged 71 points to close at 2,143. The DSES index, tracking Shariah-compliant stocks, rose 36 points to finish the week at 1,150.
Selective heavyweight stocks, including Islami Bank Bangladesh, Beximco Pharmaceuticals, Square Pharmaceuticals, Pubali Bank and City Bank, accounted for nearly half of the week's index gain.
According to EBL Securities, the market extended their winning streak as post-budget optimism, market-supportive fiscal measures, and the government's repeated commitment to capital market development continued to strengthen investor confidence.
The upward momentum extended further supported by heightened buying spree in heavyweight Islami Bank shares, following government-backed regulatory support aimed at easing the bank's acute liquidity stress, said the stockbroker.
Meanwhile, Bangladesh Bank provided Tk 50 billion in special liquidity support to Islami Bank Bangladesh in two phases this week to help the country's largest Shariah-based lender overcome an acute cash shortage.
Following the news, Islami Bank's stock jumped 20 per cent this week after facing a sharp decline immediately after removal of the floor price last week. Islami Bank alone added a 36-point gain of the prime index this week.
Market participation on the premier bourse remained robust, as total turnover reached Tk 64.18 billion this week, almost the same as Tk 64.36 billion in the week before.
Accordingly, average daily turnover stood at Tk 12.84 billion as against Tk 12.87 billion a week earlier.
Investors remained mostly active in the textile sector, which accounted for 12.8 per cent of the week's total turnover, followed by general insurance (12.1 per cent) and pharmaceuticals (10.8 per cent).
Gainers slightly outnumbered losers. Of the 386 issues traded on the DSE, 183 advanced, 173 declined and 30 remained unchanged.
All the major sectors posted gains this week. The non-bank financial institution booked the highest gain of 4.73 per cent, followed by banking telecom, pharma, engineering, power and food & allied.
Summit Alliance Port emerged as the week's most-traded stock, with shares worth Tk 2.78 billion changing hands. It was followed by IPDC Finance, NCC Bank, Beximco Pharma and BD Thai Aluminum.
The Chittagong Stock Exchange (CSE) also ended higher. Its All Share Price Index (CASPI) rose 160 points to 15,354, while the Selective Categories Index (CSCX) jumped 69 points to 9,389.
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