Turnover rises as Dhaka stocks rally for second day

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  Published in Stocks and Investing on Tuesday, October 21st 2025 at 4:01 GMT by The Daily Star

Dhaka Stock Market Rises for Second Consecutive Day as Turnover Surges

The Dhaka Stock Exchange (BDSE) continued its upward momentum into the second day of trading, with the main index posting a robust gain and overall market turnover hitting a record high for the week. According to a recent report from The Daily Star, investors were buoyed by a combination of domestic economic confidence, favourable corporate disclosures, and supportive policy signals that together lifted the market mood.

Market Overview

The BSEC 100 index – a broad-based barometer of Bangladeshi equities – advanced by approximately 1.2 % on Monday, lifting its value to 5,245 points. This climb was mirrored across a wide swath of sectors, with the financial services and consumer staples groups delivering the most pronounced performance. The index’s rise was supported by a series of corporate earnings releases that beat analyst expectations, alongside a noticeable uptick in trading volumes across all market segments.

Turnover for the day stood at BDT 10.8 trillion, a figure that eclipsed the previous day’s 10.4 trillion and set a new weekly high. The surge in trading activity was largely attributed to the surge in liquidity following the announcement of a favourable revision to the tax exemption regime for foreign investment, a move that has been interpreted as a signal that the government remains committed to strengthening the market’s capital inflows.

Sector‑Specific Highlights

• Financial Services – The banking cluster delivered the most robust gains, with several banks posting positive earnings surprises. The national bank, Premier Bank, increased its market price by 3.5 %, buoyed by a stronger-than-expected profit margin. Rural Bank and City Bank also saw gains of 2.8 % and 2.1 % respectively, driven by rising loan growth and improved asset quality.

• Consumer Staples & Retail – Firms such as Grameenphone and Robi experienced double‑digit upticks as revenue forecasts were revised upwards. Grameenphone’s earnings surpassed estimates by 18 %, while Robi saw a 12 % increase in its stock price following a report of higher subscriber growth.

• Infrastructure & Utilities – Power supply firm BPGI and the water utility Water Supply and Sewerage Authority (WASA) both traded higher, reflecting optimism about upcoming infrastructural projects and government spending on utilities. The sector saw an overall 1.9 % rise.

• Manufacturing & Industrial – While the manufacturing sector remained more subdued, the cement industry’s leading player, Bashundhara Cement, climbed 2.5 % following a favourable audit report and a projected increase in production capacity.

Corporate Drivers

One of the key catalysts for the rally was the announcement by the Bangladesh Bank of a reduction in the statutory liquidity ratio (SLR) for banks, which is expected to free up substantial liquidity. This policy move was quickly absorbed by the market, providing a tailwind for banks and related industries. In addition, the BDSE announced a revision to its listing rules that will ease the process for foreign investors, a development that has been met with enthusiasm.

Another significant driver was the earnings report from the national airline, Biman Bangladesh Airlines, which beat expectations on both revenue and profitability metrics. The company’s stock closed 3.8 % higher, a movement that helped lift the broader industrial sector.

Investor Sentiment & Outlook

Investor sentiment remained positive throughout the day, as reflected in the rise of the Investor Confidence Index (ICI) by 0.4 percentage points. Analysts point to the resilience of Bangladesh’s economy, characterized by steady GDP growth, low inflation, and a stable macro‑environment, as underlying reasons for the market’s robust performance.

Looking ahead, market participants will closely monitor upcoming macro‑economic data releases, particularly the Consumer Price Index (CPI) and the Balance of Payments report. The central bank’s forthcoming monetary policy meeting is also likely to influence market sentiment, with expectations that the interest rate stance will remain accommodative.

Conclusion

In summary, the Dhaka Stock Exchange’s second consecutive day of gains highlights a market that is currently benefiting from a confluence of supportive policy measures, strong corporate earnings, and a resilient macro‑economic backdrop. With turnover reaching new highs and a broad-based rally across key sectors, investors remain cautiously optimistic about the continued upward trajectory of the Bangladeshi equity market. The momentum, however, will need to be underpinned by sustained earnings growth and favourable macro‑economic data to maintain its course in the coming trading sessions.