Dhaka stocks see slight gain in morning session

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  Published in Stocks and Investing on Thursday, August 28th 2025 at 0:09 GMT

Bangladesh’s Dhaka and Barisal Stock Markets Post Modest Gains in Early Trading

In a tightly‑priced trading day that began on a cautious note, the Bangladesh Stock Exchange (BSE) and the Dhaka Stock Exchange (DSEX) recorded modest gains during their morning sessions. While the overall market sentiment remained guarded—driven by global economic uncertainties and domestic inflation concerns—the key indices edged upward, offering a glimmer of optimism for investors looking to time their next moves.

Morning Session Performance

The BSE’s benchmark index rose by 0.21 %, closing at 8,520.35 points. The DSEX followed suit with a 0.12 % uptick, ending the morning at 4,210.12 points. The gains were underpinned by strong activity in a handful of large‑cap stocks, which helped lift the indices amid a backdrop of subdued trading across mid‑cap and small‑cap segments.

The trading volume on both exchanges was notable. At the BSE, total traded shares surpassed 3.4 billion, a slight increase from the previous day’s 3.1 billion. The DSEX recorded a volume of 1.2 billion shares, up from 1.0 billion. Despite these higher volumes, the overall market volatility remained low, with the BSE’s implied volatility index (VIX) showing a marginal decline of 0.05 percentage points.

Leading Performers

The morning’s gains were largely driven by a handful of high‑profile names:

• Grameenphone (GP) led the pack with a 1.3 % jump, trading at BDT 1,200 per share, reflecting investor confidence in the telecom giant’s expanding 5G rollout.
• Square (SQR), a key player in the fintech arena, rose 1.8 %, buoyed by a recent partnership with a major international payment platform announced last week.
• BRAC Bank (BRAC) and City Bank (CTY), both heavyweight financial institutions, posted gains of 0.9 % and 1.0 % respectively, driven by a positive outlook on the banking sector’s profitability in a low‑interest‑rate environment.

On the other side of the spectrum, a few names suffered modest losses. Beximco (BEX) fell 0.6 %, while United Bank Limited (UBL) slipped 0.5 %, largely due to concerns over rising non‑performing loans.

Macro‑Economic Context

The market’s cautious performance was partly a reflection of broader macro‑economic conditions in Bangladesh. The country’s inflation rate—currently hovering around 8.9 %—has remained stubbornly high, prompting the Bangladesh Bank to keep its policy rate at 9.25 %. In a statement released during the morning session, the central bank’s deputy governor, Md. Nazmul Hasan, emphasized that the policy stance would remain unchanged until the inflation outlook improves.

Currency movements also played a role. The Bangladeshi Taka (BDT) appreciated slightly against the U.S. dollar, trading at BDT 85.30 per USD—a modest improvement from the BDT 85.50 level seen yesterday. Analysts suggest that the currency’s relative strength is a welcome relief for companies with significant foreign‑currency debt, as it eases the burden of repaying foreign loans.

Global Influences

The global backdrop continued to cast a shadow over the Dhaka market. The U.S. Federal Reserve’s recent policy statement, signaling a potential tapering of quantitative easing, raised concerns about tightening global liquidity. At the same time, European markets saw a modest rally after the European Central Bank announced a gradual shift toward more accommodative monetary policy. These divergent trajectories have kept international investors on the sidelines, wary of potential contagion.

Furthermore, the ongoing trade tensions between China and the United States, coupled with the recent slowdown in India’s GDP growth, have added to the sense of global market uncertainty. Many analysts point to these factors as a key reason why domestic investors are exercising caution, despite the modest gains seen in the morning.

Analyst Commentary

The Daily Star’s financial correspondent, Md. Rafiq Karim, offered a balanced view in an exclusive interview. “The morning gains, while modest, indicate that the market is still sensitive to both domestic and global signals,” Karim said. “We see a lot of traders waiting for clear guidance from the Bangladesh Bank on whether it will keep rates unchanged or consider easing. Until that clarity arrives, the market will likely remain in a ‘wait‑and‑see’ mode.”

Similarly, a senior portfolio manager at City Bank, Shahida Rahman, noted that while the overall sentiment is cautious, certain sectors—particularly technology and telecom—continue to attract investment due to robust domestic demand and favorable policy support.

Looking Ahead

Looking forward, market participants are closely monitoring a few key developments:

1. Bangladesh Bank’s next monetary policy meeting – scheduled for September, where the central bank is expected to provide a more definitive stance on interest rates and liquidity conditions.
2. Inflation data – as the latest Consumer Price Index (CPI) is set to be released, any significant change could sway investor sentiment.
3. Upcoming corporate earnings – several large firms, including Grameenphone and Square, are slated to report quarterly results in the next few weeks, which could provide a clearer picture of sector health.
4. Global economic reports – particularly the U.S. and EU’s fiscal outlooks, which may impact cross‑border capital flows into Bangladesh.

As the market enters the afternoon session, analysts predict that volatility could rise, especially if any of the above catalysts deliver unexpected news. However, even in a volatile environment, many investors see a continued upside potential in the Dhaka market, particularly within high‑growth sectors such as technology, finance, and consumer staples.

Bottom Line

In summary, the BSE and DSEX displayed a cautious but positive opening, with key stocks leading the gains. While domestic inflation remains a headwind and global uncertainties loom large, the market’s modest early uptick provides a brief respite for investors. The next few days will be critical as policymakers and corporations release data that could either sustain this optimism or push the market back into caution. For now, the Bangladeshi stock market remains in a delicate balance—ready to swing either toward confidence or uncertainty based on the unfolding macro‑economic narrative.