Staff Correspondent: Shares of Islami Bank Bangladesh PLC spearheaded a strong rally on the Dhaka Stock Exchange (DSE) this week, helping the benchmark DSEX index post its second consecutive weekly gain amid growing investor confidence following the national budget announcement.

The DSEX index climbed 140.99 points, or 2.55 percent, to close at 5,661.38 points, while the DS30 and DSES indices gained 3.39 percent and 3.21 percent respectively. Although average daily turnover slightly declined by 0.29 percent to Tk 12.84 billion, strong buying in selected blue-chip stocks fueled the market's recovery. 

At the center of the rally was Islami Bank, whose share price surged 19.59 percent during the week to close at Tk 34.80. The bank emerged as the single largest contributor to the DSEX index, adding 36.94 points, far ahead of any other listed company. The stock also witnessed a sharp rise in trading activity, with average daily turnover jumping more than 162 percent from the previous week. 

Market analysts attributed the renewed investor interest in Islami Bank to recent regulatory support measures and growing expectations that the country's largest Islamic lender is gradually stabilising after a prolonged period of governance and asset-quality concerns. The bank's strong influence on the benchmark index highlighted investors' preference for fundamentally important banking stocks amid improving market sentiment. 

Another major contributor to the market's rise was Beximco Pharmaceuticals Ltd, whose stock gained 13.18 percent and contributed 20.74 points to the DSEX. Investors responded positively to expectations surrounding the resolution of pending earnings disclosures and prospects related to low-cost generic cystic fibrosis drugs. 

The overall market was buoyed by optimism surrounding the FY2026-27 national budget, which included several measures viewed as supportive of the capital market. Investors also continued shifting funds toward fundamentally stronger companies as regulators intensified efforts to discourage speculative trading in weaker stocks. 

Sector-wise, Information Technology led gains with a 4.93 percent rise, followed by Financial Institutions and Mutual Funds. Trading activity remained concentrated in the Insurance, Textile, and Pharmaceuticals sectors. 

Among individual gainers, SAIF Powertec rose 39.71 percent, while NFM Limited and SS Steel gained 28.48 percent and 27.78 percent respectively. However, Beximco suffered the steepest decline among losers, falling 40.72 percent. 

Analysts believe the sustainability of the current rally will largely depend on whether investor participation broadens beyond a few heavyweight stocks. Nevertheless, Islami Bank's strong performance this week has reinforced its role as a key market mover and a major barometer of investor confidence in Bangladesh's banking sector.

With the bank accounting for the largest positive impact on the DSEX and attracting renewed institutional interest, market participants will closely watch whether the momentum in Islami Bank shares continues in the coming weeks.