Dhaka Stock Exchange Gains: Mutual Funds Soar 22% in July

The Dhaka Stock Exchange (DSE) marked its fourth consecutive month of gains in July 2026, primarily driven by a robust performance in mutual funds. This upward trajectory was also supported by encouraging corporate earnings, investor-friendly policy initiatives, and ongoing regulatory reforms.

Key Market Indicators

• The benchmark DSEX index rose by 132 points, a 2.3% increase, closing at 5,895, according to Sheltech Brokerage Limited.
• The blue-chip DS30 index advanced by 1.78% to 2,217.
• The Shariah-based DSES index climbed 2.32% to 1,195.
• Average daily turnover increased by 4.03% month-on-month to Tk1,254 crore.
• Average daily trading volume saw a 9.57% rise to 425.5 million shares.

Mutual funds emerged as the standout sector in July, experiencing a significant increase in market capitalization. This surge was directly linked to growing optimism surrounding government plans to reform the mutual fund industry, prompting investors to accumulate fund units.

• Mutual fund market capitalization increased by nearly 22%, the highest among all sectors.
• Average daily turnover in the sector jumped 189% month-on-month to Tk42.87 crore.

Broader Market Strength

The rally extended beyond mutual funds, indicating a broad-based improvement in investor sentiment. Several other key sectors also recorded substantial gains during the month.

• Textile stocks gained 10.81%.
• Food and allied sector rose 7.46%.
• Jute sector advanced 6.34%.
• Travel and leisure stocks climbed 6.10%.
• Tannery sector increased 5.92%.
• Non-bank financial institutions saw a 5.68% gain.

Bangladesh’s stock market demonstrated strong performance regionally, outperforming India’s Sensex and Thailand’s SET Index. This resilience occurred despite prevailing global geopolitical tensions, driven by improving domestic sentiment and regulatory changes.

Corporate Earnings and Outlook

Corporate earnings remained a positive factor, with 65 out of 89 listed companies reporting year-on-year growth in earnings per share for the April-June quarter. Banks and non-bank financial institutions particularly benefited from higher income from government securities.

Investors are now focusing on the finalization of the revised margin lending framework and upcoming dividend declarations. Continued reforms, supportive monetary policy from Bangladesh Bank, and stable corporate earnings are expected to sustain the market’s positive momentum.