BNP-linked companies lead gains as Dhaka stocks see post-election surge

Shares of companies linked to senior BNP figures led a broad-based rally yesterday as the country's capital market surged in the first trading session following the party's decisive victory in the 13th parliamentary election.

The benchmark index of the Dhaka Stock Exchange climbed 200 points, with the market closing firmly in positive territory and total turnover reaching Tk1,275 crore. Market data shows that 92.39% of listed securities advanced, while 75 companies and mutual fund units hit their upper circuit limits, reflecting widespread investor optimism.

Analysts attributed the rally to renewed confidence and expectations of policy continuity under the incoming government, with investors positioning themselves in anticipation of a more business-friendly environment.

Kay & Que and National Bank jump

Abdul Awal Mintoo, BNP vice chairman and former FBCCI president, won the Feni-3 constituency. He serves as chairman of Kay & Que (Bangladesh) Limited. The company's share price surged 8.74% to close at Tk470.50 yesterday.

For the 2024-25 fiscal year, Kay & Que declared a 4% cash dividend and a 6% bonus dividend. However, the Bangladesh Securities and Exchange Commission did not approve the proposed 6% bonus shares. According to the company's annual report, earnings per share (EPS) rose sharply to Tk9.49 from Tk0.67 in the previous year, primarily due to higher sales revenue.

Mintoo is also chairman of National Bank. Shares of the bank climbed 9.76% yesterday to close at Tk4.50, reflecting increased demand from investors.

Quasem Industries advances

Although Tasvir Ul Islam, managing director and CEO of Quasem Industries Limited, lost the Kurigram-3 seat, the company's shares still gained 6.73%, closing at Tk44.40.

The company announced a 10% bonus dividend for FY25. Its EPS stood at Tk1.04, up from Tk0.42 a year earlier. Net asset value (NAV) per share also improved to Tk29.06, indicating stronger balance sheet fundamentals.

Monno Group shares rally

BNP candidate Afroza Khan Rita secured victory in the Manikganj-3 constituency, triggering a surge in shares of three listed companies under the Monno Group.

Shares of Monno Fabrics Limited jumped 9.87% to Tk24.50. Despite EPS falling to Tk0.04 from Tk0.09 in FY25, the company declared a 0.25% cash dividend for general shareholders.

Monno Ceramic Industries Limited gained 9.25%, closing at Tk90.90. The company announced a 2% cash dividend. Although EPS declined to Tk0.22 from Tk0.39, NAV per share increased to Tk80.14.

Meanwhile, Monno Agro & General Industries Limited rose 7.35% to Tk397.50. It declared a 5% cash dividend, though EPS dropped to Tk1.00 from Tk2.15 in the previous year.

Dhaka Bank and ACME gain

Following the victory of Mirza Abbas Uddin in Dhaka-8, shares of Dhaka Bank climbed 9.63% to Tk14.80. For the July-September quarter, the bank reported EPS of Tk0.24 and consolidated NAV per share of Tk22.94.

Shares of ACME Laboratories, associated with BNP leader Mizanur Rahman Sinha, increased 5.25% to close at Tk80.20. The company declared a 35% cash dividend for FY25. Its EPS stood at Tk11.48, close to Tk11.61 in the previous year, while NAV per share rose to Tk126.37.

Islami Bank and Ibn Sina slip

In contrast, shares of Islami Bank Bangladesh and Ibn Sina Pharmaceutical Industry, considered associated with Jamaat-e-Islami, declined yesterday. Islami Bank Bangladesh shares fell 4.99%, while Ibn Sina shares dropped 2.97%.

Analysts advise caution

Market analysts say it is common to see short-term rallies in companies linked to influential political figures after election results. Investors often anticipate favourable policy decisions, smoother regulatory processes, and a supportive business environment.

However, experts caution that such politically driven price movements are rarely sustainable. Over the long term, company fundamentals, earnings growth, asset quality, and cash flow determine true market value. Investors are advised to avoid making decisions based solely on political developments.

Market observers believe the new government's economic priorities, reforms in the banking and industrial sectors, and overall macroeconomic stability will shape the market's trajectory in the coming months. For now, yesterday's rally appears to reflect immediate investor enthusiasm following the election outcome.