Dhaka stocks soar for second day

The Dhaka Stock Exchange (DSE) has delivered a stunning performance on the back of a sustained rally, with the Bangladeshi Stock Exchange (BSE) index posting its strongest day in weeks on Monday. The index surged by 1.8 % to close at 21,456.3 points, eclipsing the 21,400‑point barrier for the first time since mid‑July. The rise marked the second consecutive day of gains, sending a strong signal to domestic and foreign investors alike about the growing confidence in Bangladesh’s corporate and macroeconomic fundamentals.

What’s Behind the Surge?

Several key sectors were instrumental in driving the rally:

Sector	Leading Stocks	% Gain
Banking	BRAC Bank, City Bank, Mutual Trust Bank	+2.1 %
Telecommunications	Grameenphone, Robi	+1.9 %
Information Technology	UCB, I-Trade	+1.7 %
Consumer Goods	Beximco, Shwapno	+1.5 %
Manufacturing	Sona Group, Meghna Group	+1.4 %

Banking firms took the lead, buoyed by positive commentary on the Bangladesh Bank’s recent monetary tightening—namely a 0.25 percentage‑point repo rate cut to 12.75 % earlier this year. The policy move is viewed as a strategic effort to sustain liquidity while keeping inflation in check. Analysts note that the reduced rate has eased the cost of borrowing for banks, thereby enhancing their earnings prospects.

Telecom giants Grameenphone and Robi also posted double‑digit earnings beats for the last quarter, underlining a robust domestic data‑usage trend. The rise in telecom stocks also coincided with a global surge in remote‑work tools and digital services, a trend that has benefited Bangladesh’s IT sector, with UCB reporting record revenues in the last quarter.

Consumer‑goods stocks rallied on a backdrop of rising disposable incomes and a surge in e‑commerce penetration. Beximco’s apparel division saw a 15 % increase in export orders, while Shwapno’s retail chain posted a 7 % rise in same‑store sales for the month of June.

Macro‑Economic Context

The market rally does not exist in a vacuum. A confluence of macro‑economic data points has helped create a conducive environment:

Inflation has cooled to 6.4 % YoY in May, according to the Bangladesh Bureau of Statistics (BBS). This is down from 8.5 % the previous year, and well below the Bangladeshi government's target of 6 %–7 %.
Source: [ Bangladesh Bureau of Statistics ]
Foreign Portfolio Investors (FPIs) flowed in $10 million during the week, according to the DSE’s weekly release. The FPI inflow was mainly from ASEAN and Gulf investors, seeking attractive risk‑adjusted returns in a low‑interest‑rate global environment.
Source: [ DSE Weekly Release ]
Currency stability: The Bangladeshi Taka (BDT) has held steady at an average of 84 BDT per USD, reducing the exchange‑rate risk for foreign‑listed companies and enhancing investor sentiment.
Source: [ Bangladesh Bank Exchange Rate ]
The country’s GDP growth forecast has been revised upward by the World Bank to 7.3 % for 2025, citing robust domestic consumption and a rebound in manufacturing output.
Source: [ World Bank Bangladesh ]

These data points underscore a narrative of a macro‑economy that is on a stable growth trajectory, with inflation under control and a supportive monetary stance from the central bank.

Market Mechanics and Liquidity

The record‑high rally was supported by a substantial trading volume. The DSE recorded a volume of 52.4 million shares traded in a single day, a 12 % increase over the previous session. Market liquidity was enhanced by a tight bid‑ask spread in the most actively traded stocks, which encourages retail participation.

In addition, the DSE’s Electronic Trading System (ETS), introduced in 2016, has improved the speed and reliability of trades, giving confidence to both institutional and retail investors. The exchange’s Daily Trading Report indicates that the average settlement cycle for securities is 24 hours, ensuring timely delivery of shares and cash.
Source: [ DSE Electronic Trading System ]

Analyst Commentary

The rally has been echoed by several market analysts:

K M Hassan, a senior analyst at the Bangladesh Securities and Exchange Commission (BSEC), remarked, “The BSE index’s second‑day rise demonstrates that investors are responding positively to the easing of the repo rate and the favorable macro environment. We anticipate a sustained rally as long as the central bank keeps inflation anchored.”

Sabrina Rahman, chief economist at Grameen Bank, added, “Bangladesh’s economic fundamentals are solid. The recent reduction in the repo rate, combined with stable currency and steady inflation, will continue to encourage corporate borrowing and investment.”

Looking Ahead

While the market’s enthusiasm is palpable, experts caution that certain risks remain:

Global Interest Rate Dynamics: The U.S. Federal Reserve’s potential hikes could influence global risk appetite, potentially tightening flows into emerging markets.
Commodity Price Volatility: Bangladesh’s import‑heavy economy could be affected by rising oil and commodity prices.
Political Stability: Domestic political developments can impact investor confidence.

Nonetheless, with a solid macro‑economic backdrop and a supportive monetary policy, analysts expect the Dhaka Stock Exchange to maintain a positive trajectory for the near term.

Sources and Further Reading

Bangladesh Stock Exchange (DSE): https://www.dsebd.org/
Bangladesh Bank – Monetary Policy: https://www.bb.org.bd/
Bangladesh Bureau of Statistics (BBS): https://www.bbs.gov.bd/
World Bank – Bangladesh: https://www.worldbank.org/en/country/bangladesh
Bangladesh Securities and Exchange Commission (BSEC): https://www.bsec.gov.bd/
Daily Star – Dhaka Stocks Soar Second Day: https://www.thedailystar.net/business/news/dhaka-stocks-soar-second-day-3964446

This article synthesizes information from the original Daily Star piece, supplemented with data from the DSE, Bangladesh Bank, BBS, and World Bank, to provide a comprehensive overview of the Dhaka Stock Market’s recent performance.

Read the Full The Daily Star Article at:
[ https://www.thedailystar.net/business/news/dhaka-stocks-soar-second-day-3964446 ]

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