The benchmark index of the Dhaka Stock Exchange (DSE) rebounded strongly from the previous week's losses, hitting a two-month high, driven by renewed buying interest in undervalued blue-chip stocks ahead of national election.
Market analysts attributed the rally to a broad-based price surge across major sectors, as opportunistic investors returned to the market seeking potential quick gains.
Both general and institutional investors rushed to inject fresh funds into blue-chip stocks, which had fallen to attractive price levels following a recent market correction.
"The stock market had become oversold after several months of decline, largely driven by political uncertainty. However, as the election approaches as the candidates started campaigning on Thursday, some of that uncertainty has eased, encouraging fresh investment," said a leading stockbroker.
He predicted that the stock market will maintain a positive outlook post-election, supported by political stability and the potential for macroeconomic recovery.
Meanwhile, a delegation of capital market stakeholders, led by Dhaka Stock Exchange Brokers' Association met BNP Chairman Tarique Rahman on January 20 to discuss the state and future of the capital market.
The delegation comprised representatives from the Dhaka Stock Exchange, Chittagong Stock Exchange, Association of Asset Management Companies and Mutual Funds, and Bangladesh Merchant Bankers Association.
Following this development, investors renewed their buying appetite for fundamentally strong large-cap stocks, driving the market index to two-month high.
Moreover, growing accumulation in the insurance sector stocks also remained evident throughout the week in response to recent sector-specific developments.
This week, the market saw five trading sessions. Of them, the first three sessions closed sharply higher while the last two sessions ended marginally lower.
The prime DSEX index finally settled the week 140 points or 2.84 per cent higher at 5,099, after losing 39 points in the previous week.
EBL Securities, in its weekly market analysis, said the stock market regained its recovery momentum this week, with broad-based participation and renewed buying interest in the perceived undervalued blue-chip stocks.
The market opened the week on a strong footing, with positive momentum sustained over three consecutive sessions, reinforcing overall market strength.
Although profit-booking pressure surfaced in the latter part of the week, it could not offset the upbeat vibe as buyers sustained their hold over the market's momentum, enabling market indices to close higher from the previous week, said the stockbroker.
The blue-chip DS30 index, a group of 30 prominent companies, also soared 50 points to close at 1,963 while the DSES index, which represents Shariah-based companies, rose 29 points to 1,025.
Price gain of selective large-cap stocks, including Square Pharma, BRAC Bank, Beximco Pharma, Walton and BAT Bangladesh, largely contributed to the market surge. These five stocks accounted for a 48-point rise in the DSEX.
Increased trading activity across the board added further strength to the market's recovery momentum. The total market turnover stood at Tk 28.79 billion this week as against Tk 19 billion in the week before.
Accordingly, the average daily turnover stood at Tk 5.76 billion, up 51 per cent from Tk 3.80 billion in the week before.
Investors were mostly active in the general insurance sector, which accounted for 17.9 per cent of the week's total turnover, followed by pharma (16.1 per cent) and banking sector (11.1 per cent).
However, there is also a cause for concern, as 'Z' category stocks dominated the top 10 weekly gainers' chart, indicating potential market manipulation.
Eight junk stocks -- Fareast Finance, Premier Leasing, International Leasing, FAS Finance, Peoples Leasing, Prime Finance, BIFC and GSP Finance -- were the weeks' top 10 gainers, soaring between 62 and 21.4 per cent this week.
Gainers strongly outnumbered losers on the DSE floor. Of 388 issues traded, 309 saw prices higher while 41 others ended higher and 38 issues remained unchanged.
Major sectors showed positive performance. The general insurance witnessed the highest gain of 9.2 per cent, followed by telecom, engineering, food, pharma, non-bank financial institutions, power and banking sectors.
Orion Infusion became the most-traded stocks, with shares worth Tk 1.13 billion changing hands, closely followed by Square Pharmaceuticals, City Bank, Asiatic Laboratories and Beximco Pharma.
The Chittagong Stock Exchange also ended higher after a single-week break, with its All Shares Price Index (CASPI) rising 339 points to close at 14,261 while the Selective Categories Index (CSCX) soaring 208 points to 8,830.
The port city bourse traded 11.74 million shares and mutual fund units with turnover value of Tk 582 million.
babulfexpress@gmail.com
© 2026 - All Rights with The Financial Express
