Dhaka stocks extended their rebound on Monday from the recent bottom seeing a five year low as investor sentiment improved amid hopes for political stability.
Also increased participation from rebate-seeking taxpayers helped the market recovery, said analysts.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) rose by 1.26% to close at 4,783, building on a 0.32% gain from the previous session.
Trading activity also picked up, with turnover surging to over Tk 417 crore, up from Tk 263 crore on Sunday.
Market analysts attributed the upward trend to growing confidence following the announcement of a timeline for the national election.
“The political clarity has helped restore some investor faith,” said Md Moniruzzaman, Managing Director of Prime Bank Securities.
He also noted that global market stability, particularly the easing concerns over a potential further escalation in the Iran-Israel conflict, contributed to the positive momentum.
Despite short-term treasury bill yields climbing back above 12%, equities continued to attract buyers.
“The positive momentum was partly driven by undervalued stocks and increased investments from individual taxpayers looking to for some tax rebates against their investments.”