Stocks rallied sharply on Sunday as investors returned after the election holidays, pushing the benchmark index to a five-month high on expectations of a stable political transition and economic policy clarity.
The Dhaka Stock Exchange broad index DSEX rose 3.72 per cent, or 200.7 points, to close at 5,601, up from 5,400 in the previous session.
Turnover surged 61.4 per cent to Tk1,280 crore from Tk790 crore, crossing the Tk1,000 crore mark as broad-based buying lifted most sectors.
Out of 397 traded issues, 363 advanced, 20 declined and 14 remained unchanged, reflecting strong market breadth.
Bank stocks accounted for 26.3 per cent of turnover, followed by pharmaceuticals at 14.2 per cent and textile at 12.3 per cent, while financial institutions, travel and ceramic led sectoral gains.
The Chittagong Stock Exchange also closed higher, with the CSCX gaining 282.8 points and the CASPI rising 484.4 points.
EBL Securities said improved clarity surrounding the political transition fuelled investor optimism over a favourable post-election market trajectory.
Market participants drew parallels with the rally that followed the Sheikh Hasina government’s fall on August 5, when the index jumped 800 points to reach 6,020 under the interim administration.
That momentum faded amid financial sector restructuring and rising non-performing loans, which created supply-side pressure as investors remained cautious.
Since then, 111 of the 360 listed companies slipped into the Z category, while 120 firms reported a combined net loss of Tk29,700 crore over the last four quarters.
United Securities Director Md Mahfuzur Rahman said sentiment had begun improving after the Election Commission announced the poll schedule, and Sunday’s 200-point gain reflected investor confidence in a peaceful and participatory transition of power.
While some fear the rally could lose steam as before, he said the market remains fundamentally undervalued compared to regional peers, with a price-to-earnings ratio of about nine times.
He added that sustained momentum would depend on reducing inflation and interest rates, expanding market depth through listing large companies and attracting higher foreign investor participation.
“It is therefore a time to be confident rather than cautious,” he said.
