Stocks in Dhaka bounce back following a seven-day correction period
The Dhaka Stock Exchange (DSE) witnessed a significant rebound on August 14, 2025, following seven consecutive sessions of decline. The benchmark DSEX index gained 54.38 points (1.02%), closing at 5,350, while the blue-chip DS30 index added 17 points to finish at 2,074.
The rebound was primarily due to cautious investors engaging in both buying and selling, which reinvigorated the market after the correction period. The turnover reached Tk 252.76 crore early in the trading session, indicating renewed investor participation.
The market breadth was mixed but leaned positive, with 295 advancing stocks compared to 51 declining ones. Notably, some individual stocks like Hwa Well Textiles surged 9 percent, reflecting select strong buying demand.
Among the top gainers were non-bank financial institutions (NBFI), which recorded the biggest gain of 3.44%. Other top gainers included Hwa Well Textiles (BD), Wata Chemicals, GQ Ball Pen Industries, Southeast Bank, and Summit Power.
Major blue-chip stocks contributing to the DS30's positive movement included Investment Corporation of Bangladesh, LafargeHolcim Bangladesh, Robi Axiata, Beacon Pharmaceuticals, Beximco Pharmaceuticals, Walton Hi-Tech Industries, United Power Generation and Distribution Company, British American Tobacco Bangladesh Company, Summit Power, and Southeast Bank.
However, top decliners included SEML FBLSL Growth Fund, Green Delta Mutual Fund, Vanguard AML Rupali Bank Balanced Fund, Zahintex Industries, and Maksons Spinning Mills.
A key factor supporting equities is the declining yield on government securities, which analysts anticipate will fall further. The government's plan to merge weaker banks has also reassured the market.
Moreover, many listed companies, particularly those with a June-ending fiscal year, remain undervalued, attracting renewed buying interest. Bangladesh's foreign exchange reserves have stabilized and begun to rise, further boosting investor confidence.
Political uncertainty ahead of the upcoming national election has diminished, contributing to the positive market sentiment. The telecommunication sector declined by 2.18%, but the port city bourse, Chittagong Stock Exchange (CSE), rebounded in a green session today. The Selective Categories' Index (CSCX) and All Share Price Index (CASPI) edged up by 33 and 47 points, respectively.
Market insiders expect the current trend to continue through this week, with block trades accounted for 2.1% of the day's total market turnover. The rebound marks a positive step for the Dhaka Stock Exchange, offering a glimmer of hope for investors after the prolonged decline.
- Cautious investors participated in both buying and selling, reinvigorating the Dhaka Stock Exchange (DSE), with the rebound primarily due to this engagement.
- The market breadth was mixed but leaned positive, with 295 advancing stocks compared to 51 declining ones, indicative of select strong buying demand, especially for stocks like Hwa Well Textiles.
