The benchmark equity index of Dhaka bourse ended higher this week, paring half of the losses from the previous week, as the announcement of the national election schedule fuelled optimism in the market.
Market analysts noted that the political developments surrounding the upcoming elections offered a welcome relief to the otherwise subdued market sentiment.
The formal declaration of the election schedule, set for February 12, 2026, by the Election Commission on Thursday, spurred investor confidence, prompting increased activity in beaten-down stocks.
In addition to the political news, macroeconomic indicators showed signs of improvement. Foreign exchange reserves have stabilised, exports are on the rise, and remittance inflows remain strong -- all factors that helped bolster market sentiment.
Analysts observed that the market rebound was supported by broad-based price gains across most sectors, as opportunistic investors returned to the market for potential quick gains.
This week began on a dismal note, marked by predominant selling pressure, as cautious investors kept a close watch on the market, awaiting clearer signals from the country's political front. However, bargain hunters quickly returned, showing renewed interest in beaten-down stocks in hopes of securing short-term gains.
This week, the market ended three sessions higher while two sessions closed lower.
The prime DSEX index finally settled the week 77 points or 1.58 per cent higher at 4,964.
The blue-chip DS30 index, a group of 30 prominent companies, also rose 12 points to close at 1,903 and the DSES index, which represents Shariah-based companies, gained 10 points to 1,034.
EBL Securities, in its weekly market analysis, said while the week opened on a weak footing, carrying over the downbeat pressure from the previous week, the market soon found a cushion as anticipation over expectations of greater political clarity encouraged opportunistic investors to accumulate perceived undervalued stocks.
However, concerns over political uncertainties and ongoing financial sector restructuring remained a major concern, it said.
Price surge of blue-chip stocks, including BRAC Bank, ACI, Pubali Bank, Prime Bank and Walton, largely contributed to the market index rise. These five stocks accounted for a 13-point gain in the DSEX.
However, there is also a cause for concern, as 'Z' category stocks dominated the top 10 weekly gainers' chart, indicating potential market manipulation.
Six junk stocks -- Zeal Bangla Sugar Mills, Regent Textile, Northern Jute, HR Textile, First Finance and Usmania Glass -- were the weeks' top 10 gainers, soaring between 30 and 20 per cent this week.
The market liquidity remained stable as the total weekly turnover stood at Tk 20.88 billion as against Tk 20.57 billion in the week before.
Accordingly, the average daily turnover stood at Tk 4.18 billion, as against the previous week's average turnover of Tk 4.11 billion.
Investors were mostly active in the pharma sector, which accounted for 15 per cent of the week's total turnover, followed by textile (13.6 per cent) and engineering sector (12.9 per cent).
Gainers outnumbered the losers, as out of 391 issues traded, 333 saw price surge while 36 others ended higher and 22 issues remained unchanged on the DSE floor.
Most major sectors showed positive performance. The non-bank financial institutions posted the highest gain of 4 per cent, followed by power, food, banking, engineering, and pharma. Only telecom sector lost 2.6 per cent.
Orion Infusions became the most-traded stocks, with shares worth Tk 850 million changing hands, closely followed by Simtex Industries, Dominage Steels, Khan Brothers PP Woven Bag Industries and Fine Food.
The Chittagong Stock Exchange also rebounded, with its All Shares Price Index (CASPI) gaining 124 points to close at 13,871, while the Selective Categories Index (CSCX) rose 78 points to 8,551.
The port city bourse traded 16.42 million shares and mutual fund units with a turnover value of Tk 688 million.
babulfexpress@gmail.com
© 2025 - All Rights with The Financial Express
