Dhaka Stock Exchange Rebounds On Bargain Hunting After Two-Day Fall Despite Fuel Price Hike

Dhaka, September 23, 2026 — Stocks staged a strong rebound in early trading on Wednesday as investors snapped up beaten-down shares at attractive prices following a two-day sell-off. The buying spree came despite the government's latest fuel price hike, while global oil prices continued to decline, easing some concerns over the impact of higher domestic fuel costs.

📈 The benchmark DSEX index jumped 39 points, or 0.70 per cent, to 5,579 by 11:00 am. The recovery marked a sharp reversal from the previous two sessions, which had seen the DSEX lose ground amid investor anxiety over the September 20 fuel price increase.

📊 Key Index Movements

• 📈 DSEX (benchmark): +39 points (+0.70%) to 5,579
• 📈 DS30 (blue-chip): +8 points to 2,114
• 📈 DSES (Shariah-compliant): +8 points to 1,117
• 📈 CASPI (CSE All Share): +33 points to 14,849
• 📈 CSCX (CSE Selective): +24 points to 9,115

👥 Market Breadth And Turnover

Market breadth remained firmly positive, with 257 issues advancing against just 61 declining and 64 remaining unchanged on the Dhaka Stock Exchange (DSE). The advance-decline ratio of approximately 4.2:1 reflected broad-based buying interest rather than a narrow sectoral push.

💰 Turnover reached Tk 2.92 billion in the first hour of trading, reflecting strong buying interest across the market. Dominage Steel led the turnover chart, with shares worth Tk 170 million changing hands during the period.

The Chittagong Stock Exchange (CSE) also opened higher. Its All Share Price Index (CASPI) gained 33 points to 14,849, while the CSE Selective Categories Index (CSCX) rose 24 points to 9,115.

💼 Why Stocks Rebounded Despite Fuel Price Hike

The bargain-hunting rebound was notable because it came just three days after the government's September 20 announcement of a Tk 20 per litre fuel price hike across diesel, octane, petrol and kerosene. Initial market reaction to the fuel price hike had been negative, with the DSEX falling in the two sessions following the announcement.

However, several factors supported the Wednesday rebound:

• 🌏 Declining global oil prices — international crude prices continued to fall amid hopes of diplomatic resolution to the West Asia conflict.
• 🌏 Attractive valuations — the two-day sell-off had pushed many blue-chip stocks to attractive price levels, prompting bargain hunters to re-enter.
• 🌏 Stable remittance inflows — the 13.8 per cent year-on-year remittance growth in the first 83 days of FY27 provided external sector comfort.
• 🌏 Moody's credit rating outlook upgrade — the restoration of Bangladesh's outlook to stable had buoyed investor sentiment.
• 🌏 Banking sector recapitalisation — government reforms were showing signs of progress.

🏢 Sector Performance And Top Turnover

Dominage Steel led the turnover chart with Tk 170 million in the first hour, reflecting strong investor interest in the steel sector — a sector that traditionally benefits from infrastructure spending and construction activity.

Other heavily traded stocks included engineering, pharmaceuticals, textile, fuel and power, and food and allied sectors. The broad-based participation across sectors suggested the recovery was not driven by any single sectoral catalyst but rather by general bargain-hunting sentiment.

💼 Investor Sentiment Context

The rebound is a relatively rare positive signal for the Dhaka Stock Exchange, which has been under sustained pressure throughout 2026. The DSEX has lost significant ground year-to-date, reflecting concerns over:

• ⚠ Energy shortages affecting industrial production
• ⚠ Elevated inflation eroding household purchasing power
• ⚠ Banking sector stress with elevated non-performing loans
• ⚠ Slowing GDP growth with ADB trimming the FY27 forecast to 4.0%
• ⚠ Political uncertainty in the lead-up to early 2026 elections

Wednesday's recovery suggests that at least some investors now see select stocks as attractively valued — particularly those of companies with strong fundamentals that have been caught in the broader market sell-off.

📋 Previous DSE Scandal Compensation

The recovery also comes ahead of a major compensation programme for investors affected by the 2024 DSE brokerage scam. The DSE is scheduled to start compensating 17,332 affected investors from 28 September, in a programme that will see Tk 72 crore distributed to victims of broker fraud. The compensation is expected to inject additional liquidity into the market and partially restore investor confidence.

💼 What To Watch Next

For the rebound to be sustained, market participants will be watching several factors:

• 📈 Whether the buying momentum continues through afternoon trading and into Thursday's session.
• 📈 The full-day turnover figure — a level above Tk 8-10 billion would suggest strong institutional participation.
• 📈 Sector-specific performance — whether banks, pharmaceuticals, and RMG-linked stocks participate broadly.
• 📈 Foreign investor activity — foreign portfolio flows have been a swing factor for DSE in recent months.
• 📈 Bangladesh Bank's monetary policy stance — particularly any signal on policy rate cuts.

🏢 DSE Strategic Developments

The rebound also follows a series of strategic announcements from the Dhaka Stock Exchange aimed at modernising the capital market:

• 💻 Digital platform for open-ended mutual funds — DSE Managing Director Nuzhat Anwar announced a dedicated platform expected to go live by mid-November 2026, allowing investors to directly buy, sell and redeem open-ended mutual fund units.
• 🏛 DSE targets 10 blue-chip listings by 2027 — the exchange is actively pursuing new initial public offerings to broaden the investable universe.
• 💰 Brokerage scam victim compensation — Tk 72 crore to be distributed to 17,332 investors starting 28 September 2026.

These initiatives are aimed at deepening Bangladesh's capital market, which remains shallow compared to regional peers. Bangladesh's market capitalisation to GDP ratio is approximately 12-15 per cent, compared to over 80 per cent in India and over 50 per cent in Vietnam.

🌏 Regional Context

Bangladesh's stock market recovery also aligns with a broader regional trend, with most Asian equity indices opening higher on Wednesday following positive overnight cues from Wall Street. The MSCI Asia Pacific Index (excluding Japan) was up approximately 0.5 per cent in early trading.

However, the Bangladeshi market's underlying fundamentals remain weaker than regional peers. The country's price-to-earnings (P/E) ratio has compressed significantly over the past two years, and dividend yields on blue-chip stocks have risen to historically attractive levels — a key factor behind Wednesday's bargain-hunting.

For now, the rebound offers a rare moment of optimism for DSE investors. Whether it marks the start of a sustained recovery or is just a temporary bounce within a broader bear market will depend on the trajectory of inflation, energy supply, banking sector reforms, and the global oil price outlook.