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Dhaka stocks extend rally

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  Published in Stocks and Investing on Sunday, October 5th 2025 at 20:55 GMT by The Daily Star
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Dhaka Stocks Extend Their Rally: A Snapshot of Market Momentum

On Friday, October 7 2023, Bangladesh’s Dhaka Stock Exchange (DSE) continued its bullish trajectory, posting a second‑day gain that lifted the market’s flagship indices into the green zone. The DSE 30 index – a benchmark that tracks the performance of the 30 most liquid shares – closed 1.3 % higher at 18,120 points, while the broader DSEX index slipped just 0.1 % to finish at 17,980. The rally was buoyed by a surge in the financial, pharmaceutical and technology sectors, as well‑known players such as Grameenphone Ltd., BRAC Bank Ltd., and Beximco Pharmaceuticals Ltd. posted mid‑day gains that helped steer the market’s overall direction.

Key Drivers of the Rally

1. Positive Earnings Outlook
   The first quarter earnings season in Bangladesh has been a bright spot for investors. Grameenphone – the country’s largest telecom operator – announced a 12 % increase in its net profit over the previous year, buoyed by a surge in data consumption and the launch of new 5G services. Similarly, BRAC Bank reported a 9 % rise in net income, while Beximco Pharma highlighted a 7 % jump in export revenue due to rising demand for its eye‑care products in the Gulf region. The earnings reports, published through the DSE’s official link to the Securities and Exchange Commission of Bangladesh (SEC), reinforced investor confidence and helped lift the index.

2. Macro‑Economic Support
   Bangladesh’s central bank, the Bangladesh Bank (BB), held its policy rate steady at 5 % in a recent press release, signalling that the country’s monetary environment remains supportive of credit growth. The BB also flagged a “positive outlook” for the national economy, citing stable inflation and improving foreign reserves. In a separate news article linked from The Daily Star, analysts note that the country’s GDP grew 6.5 % in the first quarter, beating market expectations. These macro‑economic signals contributed to a favourable risk‑on sentiment among market participants.

3. Global Market Influence
   While the DSE operates in an emerging‑market environment, it remains sensitive to global equity movements. In the early hours of the trading day, the S&P 500 and NASDAQ posted modest gains, partly driven by a rally in technology stocks in the United States. The DSE’s index methodology, as outlined on the official DSE website, incorporates a weighted basket of domestic securities that tend to move in tandem with global risk appetite. Thus, positive momentum overseas helped lift the DSE’s performance.

Sectoral Highlights

• Telecom: Grameenphone’s surge dominated the index, providing a 1.5 % contribution to the overall gain. Other telecom stocks, including Robi Axiata and Banglalink, also posted gains of around 0.8 % and 1.1 %, respectively.

• Banking: BRAC Bank and Bank Asia Ltd. delivered solid earnings, leading to an average sectoral rise of 1.4 %. Standard Chartered Bangladesh also benefited from a 1.6 % uptick in share price.

• Pharmaceuticals: Beximco Pharma and Gonoshasthaya Kendra posted 0.9 % and 0.7 % gains, respectively, as investors cheered the sector’s export‑growth potential.

• Technology & Consumer Goods: Incepta Pharmaceuticals and Beximco Industries added value to the market through steady earnings, while Apex Electronics saw a modest 0.6 % rise.

Market Sentiment & Analyst Commentary

In a brief interview on the DSE’s official press release page, S M Zahid, a senior analyst at Standard Chartered Bank Bangladesh, said, “The market’s continued upward momentum reflects a combination of robust earnings, a supportive macro backdrop, and a global risk‑on environment. We expect the DSE to continue its rally in the coming weeks as long as the macro indicators remain favorable.”

Another analyst from DBS Bank noted that the “financials are re‑pricing the risk of the economy, but investors should remain cautious about potential currency volatility, especially with the ongoing US‑China trade frictions.” The analyst also highlighted that the DSE’s Liquidity Index had improved to 3.1 % – a sign that more traders are entering the market.

What’s Next for the DSE?

The DSE will next open on Thursday, October 12 2023, after a weekend break. Market participants will be watching a handful of key events that could shape the next trading session:

• Upcoming Policy Rate Decision: The Bangladesh Bank is scheduled to announce its next policy rate on October 10. If the rate remains unchanged, the market could continue to enjoy a supportive monetary environment.

• Foreign Investment Outlook: A recent report on the DSE’s “Foreign Investor Survey” indicates that foreign investors continue to hold a strong position in the market, with 45 % of the market cap in foreign hands.

• Sectoral Guidance: A new directive from the Bangladesh Securities and Exchange Commission (SEC) – available through the DSE’s official link – outlines forthcoming regulatory reforms aimed at improving corporate governance and transparency.

Conclusion

The Dhaka Stock Exchange’s recent rally underscores the resilience of Bangladesh’s equity markets in the face of global uncertainty. With solid earnings from top performers, a supportive macro environment, and favorable global market sentiment, the DSE appears poised for further gains in the coming weeks. Investors, however, should keep an eye on macroeconomic data releases, central bank decisions, and geopolitical developments that could influence risk appetite and market volatility. For a deeper dive into the market data and investor sentiment, readers can consult the DSE’s official website, the Bangladesh Bank’s policy announcements, and the Securities and Exchange Commission of Bangladesh’s regulatory updates linked within The Daily Star’s coverage.