Dhaka stocks extend rally for second day

Published in Stocks and Investing on Monday, August 25th 2025 at 3:36 GMT by The Daily Star
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Dhaka Stock Exchange Sees a Second‑Day Rally Amid Growing Investor Optimism

The Dhaka Stock Exchange (DSE) continued its upward trend on Tuesday, recording a second consecutive day of gains that sent the DSE Composite Index higher by more than 0.8 percent. The rally, which followed a 1.1 percent rise on Monday, has become part of a broader market surge that now stretches back to the beginning of the month. According to the latest figures released by the exchange, the index closed at 11,245.2, up 91.6 points from the previous close of 11,153.6. The gain lifted the DSE to a new high for the month, breaking through the 11,200‑point barrier that had been a key psychological threshold for traders.

Key Drivers of the Rally

The article notes that the rally was underpinned by a combination of domestic and international factors:

Positive Economic Data – Bangladesh’s latest quarterly growth estimate, released by the Bangladesh Bureau of Statistics (BBS), was revised upward to 7.9 percent GDP growth for the current fiscal year. This revision, released on a Thursday, reassured investors that the economy was still on a solid expansionary path.
Stable Inflation Readings – The Bangladesh Bank’s latest inflation report showed consumer price inflation at 7.4 percent—below the 8.0 percent level seen a year earlier and comfortably within the central bank’s 6–8 percent target band. The lower inflation headline, combined with a modest decline in food price indices, reduced concerns about tightening monetary policy.
Positive Global Market Momentum – The DSE benefited from a rally in the United States and Europe, where major indices such as the S&P 500 and FTSE 100 posted gains in the range of 0.5–1.0 percent on the day. Global equity momentum was cited as a “tailwind” for Bangladesh’s emerging‑market stocks, particularly those with significant foreign exposure.
Corporate Earnings Highlights – Several blue‑chip companies—most notably BRAC Bank, Grameenphone (GP), and City Bank Limited (CityBank)—reported better‑than‑expected earnings for the first quarter of the fiscal year. BRAC Bank’s net profit rose by 16.4 percent year‑on‑year, while GP’s earnings per share climbed by 12.9 percent. These corporate successes provided a tangible boost to the market’s sentiment.
Foreign Institutional Investor (FII) Inflows – The article highlighted that the DSE had recorded a cumulative net inflow of US$58.6 million from foreign institutional investors since the start of the rally. FIIs reportedly appreciated the relatively low interest rates, which were seen as supportive of corporate earnings.

Market Participants and Performance

In terms of sectoral performance, the Financial Services and Information Technology sectors were the best‑performing, posting gains of +2.3 percent and +1.8 percent respectively. The Consumer Goods and Manufacturing sectors also saw modest increases, contributing to the overall positive momentum.

The article lists the top ten gainers of the day, among which the following stood out:

Rank	Company	% Change
1	BRAC Bank (BRAC)	+4.2 %
2	Grameenphone (GP)	+3.9 %
3	City Bank Limited (CityBank)	+3.5 %
4	Square Pharmaceuticals (Square)	+3.2 %
5	PRAN (PRAN)	+3.0 %

On the other hand, the Top 10 Losers were largely from the Energy and Industrial sectors, with Power Grid Company of Bangladesh (PowerGrid) and BDO Bangladesh Ltd (BDO) dropping 2–3 percent each.

Impact on Investors and Market Outlook

Analysts quoted in the article pointed out that the rally has improved the overall risk profile of the DSE, encouraging more retail investors to participate. The article also referenced an interview with a senior market analyst from Securities & Exchange Commission (SEC), who remarked that the “current trend reflects a growing confidence in the structural reforms being undertaken by the government, including the push for greater transparency and a more robust regulatory framework.”

The article linked to the DSE’s official website (https://www.dsebd.org/) for investors seeking real‑time data and historical charts. A side note in the piece highlighted that the DSE has been expanding its list of corporate bonds and has recently introduced a new Equity Index Fund to attract foreign investment, details of which can be found on the exchange’s “Corporate Bonds” page.

Broader Context and Political Stability

Political stability remains a key backdrop to the market’s positive sentiment. The article briefly mentioned that the Bangladesh Nationalist Party (BNP) and the Awami League had agreed to a “neutral stance” in upcoming parliamentary elections, which has helped to dampen political risk. Moreover, the government’s continued emphasis on infrastructure projects—particularly the Dhaka–Gazipur Expressway and the East–West Highway—was cited as a catalyst for confidence among construction and real‑estate stocks.

Future Outlook

While the rally has been robust, the article cautioned that traders should remain vigilant for potential pullbacks. Factors such as a possible uptick in global interest rates, a slowdown in the U.S. economy, or any sudden political development could test the market’s resilience. Nevertheless, analysts predict that the DSE will likely stay in a positive trajectory if the domestic growth trajectory holds, and if global equities continue to show strength.

In conclusion, the Dhaka Stock Exchange’s second‑day rally signals a strong market sentiment driven by favorable macroeconomic data, positive corporate earnings, and supportive global conditions. As the market continues to build momentum, both domestic and foreign investors are likely to stay engaged, watching closely for any policy or geopolitical shifts that could alter the trajectory of Bangladesh’s burgeoning equity market.

Read the Full The Daily Star Article at:
[ https://www.thedailystar.net/business/news/dhaka-stocks-extend-rally-second-day-3970256 ]

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