DSEX jumps 389 points in two days, hits 3-month high

The benchmark index DSEX of the Dhaka Stock Exchange (DSE) soared by 389 points in the last two days owing to positive expectations over the recent changes in the country's political environment.

On Wednesday (7 August), the DSEX surged by 192 points and settled at a nearly three-month high of 5,619 points. In the previous session, the DSEX soared by 197 points.

The blue-chip index on the day rose by 87 points to settle at 2,022.

During the day's session, 266 scrips advanced, while 114 declined and 16 remained unchanged.

The turnover value increased slightly to Tk775 crore.

Moreover, the key index CASPI at the Chittagong Stock Exchange (CSE) ended 545 points higher at 15,938, while the general index CSCX rose 330 points to reach 9,609. The turnover value at the CSE jumped by 28 times to Tk225 crore.

EBL Securities said in its daily market review, the rebounded capital market continued its bullish trend, with the benchmark index increasing by around 200 points for back-to-back sessions as investor euphoria continues across the trading floor owing to positive expectations over the recent changes in the country's political environment.

Buyers maintained their dominance as optimistic investors kept on chasing the current rallies, while the continuous price appreciation in the major blue chip and large cap scrips added much strength to the upward market momentum, it added.

In the last two sessions, the market capitalisation at the DSE increased by Tk32,600 crore to reach Tk6.79 lakh crore.

Moniruzzaman, managing director and CEO of Prime Bank Securities, told The Business Standard that a number of investors stayed away from the market due to mismanagement, corruption, and a lack of corporate governance during the previous government. General investors were also affected by market manipulators who were facilitated by the authorities.

He said, "Now, after the fall of the government in the face of the movement, investors are coming to the market with the hope that the future government will eliminate mismanagement and corruption and ensure good governance."

"Moreover, in the last two working days, both institutional and retail investors have been active. The prices of fundamental and large-cap stocks are increasing, which is a good sign for the market," he added.

On the sectoral front, the pharmaceutical sector contributed to the highest 16.9% of the DSE turnover, followed by bank and food sectors.

During Wednesday's session, BAT Bangladesh was the top traded stock with a turnover value of Tk54.94 crore, followed by Square Pharmaceuticals with Tk38 crore, Robi with Tk22.84 crore, and City Bank with Tk20.98 crore.

All the sectors, except travel and leisure, jute, paper and tannery displayed positive returns.

Non-bank financial institutions led with a massive 9.4% surge in market capitalisation, followed by telecom and food sectors.

ACI Formulation, Aftab Auto and Monno Ceramic hit the circuit breaker upper limit at 10%, followed by Desh garments, Pragati Insurance and ACI.

Crystal Insurance was worse on the day, followed by Sonali Paper and Sunlife Insurance.

The managing director of Prime Bank Securities said that after the government changed, politically backed firms moved the most.

Saiful Islam, president of the DSE Brokers Association (DBA), said, they want investors to play a responsible role in what they buy during the uncertain situation as the government is not yet formed.