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Published : 02 Jul 2025, 07:24 PM
Equity trading in Bangladesh has turned a corner, with the Dhaka Stock Exchange (DSE) posting steady gains in index and turnover after months of sustained decline and thin volumes.
The benchmark index, DSEX, has added 26.94 points on Wednesday to close at 4,865.33, recovering from a slight dip in the previous session.
It stood at 4,838 on Tuesday, inching closer to 4,900 after falling below 5,000 in April.
Turnover has climbed to Tk 4.79 billion, compared with Tk 4.64 billion a day earlier.
Since the Eid-ul-Azha break, the index has gained 154 points over two weeks, including a single-day rise of 59 points on Jun 15 -- the highest in recent months.
Investors have started to recover lost capital as the index trends upwards.
Market capitalisation has climbed by Tk 160 billion since Eid, reaching Tk 6.66 trillion from Tk 6.51 trillion.
Throughout Wednesday’s session, the DSEX remained in positive territory.
The DSE data shows that out of 297 companies that traded, 277 gained, 69 declined, and 51 remained unchanged.
For the first time in nearly a month, turnover in key sectors including banking, pharmaceuticals and chemicals, textiles, and financials surged to the top.
The banking sector led with Tk 643 million in turnover, contributing 13.49 percent of the day’s total.
The food and allied sector followed with Tk 599 million, or 12.5 percent, while pharmaceuticals and chemicals posted Tk 568 million, or 12 percent.
Desh Garments, Islamic Finance, and Meghna Insurance topped the gainers’ list based on closing prices.
International Leasing and Financial Services, Central Insurance, and Berger Paints Bangladesh led the day’s losers.
SIGNS OF RECOVERY AFTER PROLONGED SLUMP
The global economic disruption caused by the COVID-19 pandemic began in late 2019 and started to ease towards the end of 2020.
To contain the fallout, the Bangladesh Securities and Exchange Commission (BSEC) imposed a floor price mechanism, artificially supporting the index until the first half of 2024.
Though the process of removing floor prices has begun, it has not resolved the liquidity crunch.
The market has been in long-term decline despite multiple interventions over two years aimed at preventing a major fall.
Even after removing the floor price to normalise activity, trading failed to pick up meaningfully.
A temporary rebound was seen after the government change on Aug 5 last year, but this lasted only a month before volatility returned by the end of November.
As trading volume shrank, the index dropped further.
New leadership at the BSEC could not arrest the slide.
By Apr 10, turnover had fallen below Tk 3 billion.
After stricter rules on margin loans and the taskforce’s final report, sentiment weakened again, and on Apr 23, the index dropped below 5,000 points, hovering there for two and a half months.
A sharp decline followed on May 6, and turnover fell below Tk 3 billion on May 14.
The lowest turnover of the year, Tk 2.24 billion, was recorded on Jun 4.
Until Jun 15, turnover failed to cross Tk 4 billion.
While it briefly rose above that mark, the gains lacked sustainability -- until the last five sessions, during which turnover has consistently stayed above Tk 4 billion.
This sustained pickup in activity has allowed investors to start recovering previous losses.
‘NO BIG UNCERTAINTY IN SIGHT’
DSE Brokers Association of Bangladesh (DBA) President Saiful Islam said stability in the political landscape and gradual improvement in global conditions are encouraging investors.
“With no big uncertainty in sight, investors believe the market is set to improve,” he said.
He added, “Many economic indicators are showing strength. Foreign reserves have reached $30 billion, which is promising.
“The market has to recover from where it has fallen, and it looks like it’s now on that path.”
