The Dhaka Stock Exchange (DSE) staged its strongest first-half recovery in nearly two years, with benchmark indices rebounding sharply as investor confidence returned, liquidity improved and regulatory normalisation gathered pace.
The DSEX benchmark index gained 18.4 per cent in the first six months of 2026 to close at 5,762.8 points on June 30, its highest level in almost 22 months, according to BRAC EPL Stock Brokerage’s half-year market review.
The rally was broad-based. The DS30 index advanced 17.5 per cent, the DSES Shariah index gained 16.7 per cent and the CDSET index rose 14.3 per cent during the period.
Liquidity strengthened alongside prices. Average daily turnover jumped to Tk800.3 crore in the first half from Tk521.5 crore in 2025 and Tk383.9 crore in the corresponding period last year. June alone recorded the year’s highest monthly average daily turnover of Tk1,206.1 crore as the DSEX climbed 8.0 per cent.
The brokerage attributed the recovery to post-election policy expectations, FY27 budget measures, the appointment of a new Bangladesh Securities and Exchange Commission (BSEC), removal of the remaining floor prices on Beximco and Islami Bank shares and geopolitical developments, including the US-Israel conflict involving Iran.
Ending the last remaining floor-price restrictions restored market-based price discovery and marked a key step in normalising the market, it said.
Despite the sharp rise in share prices, equity market capitalisation increased only 2.9 per cent to Tk6.99 lakh crore, suggesting gains were concentrated in actively traded stocks rather than the broader market.
Cement, services and real estate, engineering, food and allied, information technology, textile and insurance all outperformed the benchmark index. In contrast, multinational companies returned only 3.1 per cent, while the free-float-based top 10 stocks gained 8.5 per cent and the market capitalisation-based top 10 advanced 6.4 per cent, all trailing the DSEX.
Even after the rally, the market traded at a price-to-earnings ratio of 9.1 times at the end of June, indicating valuations remained relatively inexpensive.
