BNP nomination buzz lifts shares of candidate-owned firms

The announcement of BNP's candidate list for 237 constituencies in the upcoming national election has triggered a wave of excitement not just in the political arena but also in the country's stock market, as shares of companies owned by several nominated leaders surged following the declaration.

Market data from the Dhaka Stock Exchange (DSE) show that the share prices of six listed firms linked to four BNP-nominated candidates – including The ACME Laboratories, Kay & Que (Bangladesh), Quasem Industries, and three Monno Group companies – recorded notable gains in today's trading sessions that followed the announcement.

The upward movement reflects renewed investor interest in companies connected to high-profile political figures who are set to contest in the upcoming national election, expected in February next year.

Mintoo's Kay & Que rallies over 5%

In Feni-3, former Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president and BNP Vice Chairman Abdul Awal Mintoo has been nominated to contest the election. Mintoo chairs Kay & Que (Bangladesh) Limited.

Following the announcement of his candidacy, Kay & Que's share price jumped by 5.29% to close at Tk415.90 per share on the DSE.

Earlier, the company announced a 4% cash and 6% stock dividend for FY25, subject to the Bangladesh Securities and Exchange Commission's (BSEC) approval.

Kay & Que's annual financial report showed a strong performance, with its earnings per share (EPS) surging to Tk9.49 in FY25 from Tk0.67 in the previous year, largely driven by higher turnover.

Quasem Industries gains nearly 4% after Tasvir's nomination

Another BNP candidate, Tasvir Ul Islam, managing director and CEO of Quasem Industries, will contest from Kurigram-3. 

Quasem's share price increased by 3.94% to Tk42.20 following the announcement.

The company declared a 10% stock dividend for FY25, pending BSEC approval. According to its financial disclosure, Quasem Industries' EPS rose to Tk1.04 in FY25 from Tk0.42 in FY24, while its NAV per share increased to Tk29.06.

Monno shares rally as Rita gets nod for Manikganj-3

The nomination of Afroza Khan Rita alias Afroza Khanom, chairperson of the Monno Group of Industries, from Manikganj-3, sent the group's three listed firms – Monno Fabrics, Monno Ceramics, and Monno Agro Industries – surging between 8% and 10% on the DSE.

Among them, Monno Fabrics gained 9.77% to close at Tk19.10 per share.

The company announced a modest 0.25% cash dividend for general shareholders excluding sponsors and directors. It reported an EPS of Tk0.04 for FY25, down from Tk0.09 a year earlier, mainly due to higher tax expenses.

Monno Ceramics, one of the group's flagship entities, saw its shares rise 9.92% to Tk84.20. 

It declared a 2% cash dividend and reported an EPS of Tk0.22, slightly lower than Tk0.39 in FY24, citing higher finance costs despite revenue growth. The company also highlighted improved asset positions, with NAV per share increasing to Tk80.14.

Meanwhile, Monno Agro Industries advanced 8.76% to Tk335.70. The company declared a 5% cash dividend for general shareholders and posted an EPS of Tk1.00, compared to Tk2.15 in FY24. 

Despite lower profitability, analysts noted that the announcement of Afroza Khan Rita's candidacy drove speculative buying among retail investors.

ACME inches up after Sinha's nomination

In Munshiganj-2, BNP nominated Mizanur Rahman Sinha, managing director of The ACME Laboratories, one of the country's largest pharmaceutical manufacturers. 

Following the announcement, ACME's share price edged up by 0.13% to Tk75.30.

The company declared a 35% cash dividend for FY25, reflecting stable earnings and cash flow. ACME reported an EPS of Tk11.48, nearly unchanged from Tk11.61 in the previous fiscal year, while NAV per share rose to Tk126.37.

What experts say

Market observers said investors tend to react quickly to political developments that involve influential business figures, as potential shifts in power or policy can impact the outlook for private enterprises. 

"When business leaders enter electoral politics, their companies often attract short-term investor attention, particularly if they hold visible or strategic constituencies," said a senior market analyst at a leading brokerage firm.

He added that while such rallies are driven partly by sentiment, they can also be influenced by expectations of regulatory goodwill, policy shifts, or media exposure during the campaign period.

Despite the surge, market experts warned retail investors against speculative trading based solely on political momentum. 

"Share price increases following political nominations are often temporary. Fundamentals, not affiliations, determine long-term value," said a senior analyst of a brokerage firm.