The stock market displayed a rebound last week, with banking stocks demonstrating resilience at the start of the new year.
Investors showed renewed optimism, encouraged by opportunities following a challenging four years for the market.
The new year began on a positive trajectory, with opportunistic investors capitalising on oversold stocks that had undergone significant corrections in 2024.
According to analysts, the market's recovery was predominantly bolstered by select heavyweight banking stocks, particularly as major banks reported significant growth in operating profits for 2024.
But, broader market sentiment remained tepid.
DSEX index drops 3.22 points and Tk 86 crore traded in first hour
The Dhaka Stock Exchange's (DSE) benchmark index, DSEX, ended the first trading week of the year on a positive note, gaining 15 points or 0.29 per cent to close at 5,200, recovering from a 37-point drop in the previous week.
Similarly, the blue-chip DS30 index, representing 30 prominent companies, rose by 4 points to reach 1,931. However, the DSES index, which tracks Shariah-based companies, fell by 12 points to settle at 1,155.
Investor participation also surged, with average daily turnover increasing by 18.6 per cent to Tk 348.1 crore, up from Tk 293.5 crore in the previous week.
The banking sector led trading activities, accounting for 17.3 per cent of turnover, followed by pharmaceuticals (16.9 per cent) and engineering (8.8 per cent).
Sectors ended the week with mixed performances. Banking stocks emerged as the highest gainers, rising by 3.4 per cent, while the jute sector suffered the most significant loss, declining by 4.9 per cent.
Market participants noted that leading banks achieved double-digit growth in operating profits year-on-year in 2024, primarily driven by substantial income from investments in government securities.
DSEX index drops 2.38 points, Tk 209.2cr traded in 3 hours on first day of 2025
This growth spurred an uptick in their stock prices, according to a prominent brokerage.
Despite the rebound, many investors remain cautious, observing market trends in the absence of a major catalyst to dispel the persistent pessimism across trading floors.
Meanwhile, the Chittagong Stock Exchange (CSE) also posted gains.
The CSE All Share Price Index (CASPI) increased by 117 points to close at 14,552, while the Selective Categories Index (CSCX) gained 66 points, settling at 8,859.
The port city bourse traded 1.31 crore shares and mutual fund units, with a turnover value of Tk 167 crore.
Strong performances in the pharmaceuticals and petroleum sectors largely drove the trading activities.