Stock price of DSEX surges to 5,000 level, buoyed by investor optimism
In the past week, the Dhaka Stock Exchange (DSE) has experienced a significant surge in investor confidence and positive market momentum. This upward trend, according to Md Saifuddin, Managing Director of IDLC Securities, is due to several key factors.
Over a five-day rally, the DSE benchmark index (DSEX) gained a total of 201 points, crossing the 5,000 mark for the first time in nearly two and a half months. This sustained rally has helped restore investor confidence and encouraged more market participants to return to trading.
The market also saw a significant surge in turnover, reaching the highest level in eight months with daily turnover crossing Tk 5.7 billion. The increase in trading volume reflects renewed investor interest and market activity. Gains across major sectors such as banks, pharmaceutical companies, and textiles have led the market upturn, suggesting a broad-based recovery rather than isolated rallies in specific stocks.
Akramul Alam, Head of Research at Royal Capital, stated that the current uptrend may continue for a few more days. He attributed this optimism to the resilient investor behavior amid global concerns, including potential US tariffs on Bangladeshi exports.
The bulls continued to dominate the market, defying concerns over the US's proposed higher tariffs, according to EBL Securities' commentary. Of the 397 issues traded on July 9, 273 advanced, 78 declined, and 46 remained unchanged. The market experienced buy-side dominance throughout the session, as investors took positions in equities on positive expectations.
Md Saifuddin noted that stability in foreign reserves and steady remittance inflows are major contributing factors to the DSE's positive momentum. He also highlighted that investors now have a clearer understanding of ongoing capital market reforms, which is boosting confidence.
There is a sense of political calm in the country, as stated by Md Saifuddin. This stability, combined with the positive market trends, has strengthened investor confidence and is expected to continue driving the DSE's growth in the coming days. The DSE's benchmark index extended its winning streak for the sixth straight session, with the DSEX increasing by 54 points to close at 5,035 on July 9. The DSE Shariah Index (DSES) also rose by 10 points to 1,094 on the same day.
In conclusion, the Dhaka Stock Exchange has shown a remarkable recovery in recent weeks, driven by sustained index gains, surging turnover, broad sector participation, and resilient investor behavior amid global concerns. As the market continues to demonstrate positive momentum, investors and market participants can look forward to a promising future for the DSE.
The sustained rally in the Dhaka Stock Exchange (DSE) over the past week, as indicated by the record-breaking DSEX crossing the 5,000 mark, is a reflection of increased investor confidence in the finance sector. This bullish trend has been influenced by factors such as stability in foreign reserves, a clearer understanding of capital market reforms, and resilient investor behavior, even amid global concerns. In light of this positive market momentum, many observers anticipate continued investment opportunities in the stock-market.
