DSEX jumps 200 points as BNP's election victory ignites rally

Highlights:

• DSEX surges 200 points – a five-month high
• Turnover jumps 61%, nearing five-month peak
• Blue-chip DS30 index gains 86 points
• Market breadth strongly positive as 364 advance, 26 decline
• Investors reacts positively to BNP's landslide victory
• They pin hope for BNP's 'roadmap' for capital market reforms

The Dhaka Stock Exchange rallied sharply today (15 February), the first trading session after the BNP's landslide victory in the 13th national election, with the benchmark index climbing to a five-month high amid a surge in investor participation.

The benchmark DSEX index advanced 200 points, or 3.71%, to close at 5,600, approaching the five-month peak of 5,636 recorded on 8 September 2025. The blue-chip DS30 index gained 86 points to finish at 2,145.

Market breadth was overwhelmingly positive, with 364 issues advancing, 26 declining and four remaining unchanged.

Trading activity also rebounded strongly. Daily turnover jumped 61% to Tk1,275 crore, nearing the five-month high of Tk1,400 crore recorded on 8 September 2025.

On the other side, the Chittagong Stock Exchange also witnessed a sharp rally. Its general index CSCX jumped 282 points to reach 9,555, while the all-share price index CASPI gained 484 points to close at 15,518. Turnover at the Chattogram bourse jumped 162% to Tk24.65 crore.

The oath-taking of the newly elected members of parliament and the cabinet members of the new government is likely to take place tomorrow.

The Election Commission issued a gazette notification on Friday for the 13th parliamentary election, officially confirming the winners for 297 out of 299 seats where polling had been held.

The BNP secured 209 seats in the 12 February polls while Jamaat-e-Islami secured 68 seats.

Minhaz Mannan Emon, director of the DSE, told TBS that in response to long-standing investor demands, the BNP included a specific roadmap for capital market development in its election manifesto. 

"Investors now want to see the successful implementation of that roadmap," he said.

Emon alleged that during the past 15 to 17 years under what he described as a "fascist government," the capital market was subject to widespread plundering and mismanagement. 

"The market was pushed to the brink of destruction," he said, adding that thousands of investors were financially devastated during this period.

He noted that affected investors now have high expectations from the new government. "There are strong hopes and aspirations among affected investors. We want to see the successful implementation of the commitments made toward the stock market," Emon said.

In response to long-standing investor demands, the BNP included a specific roadmap for capital market development in its election manifesto. Investors now have high expectations from the new government.

Minhaz Mannan Emon, Director, DSE

Asif Khan, chairman of EDGE AMC Limited and president of CFA Society Bangladesh, said that the DSE gained 3.71% following BNP's victory. Historically, DSE returns had a standard deviation of about 0.8% to 1.1%. By that logic, today's increase is a more than 3 standard deviation move.

If financial markets were normally distributed, such a move would only happen about once a year. Financial markets are, however, not normally distributed and tend to have fat tails. Nevertheless, the move is a big one, he added.

In August 2024, right after the interim government took over, the stock market had a similar euphoric phase. Market returns on 6, 7 and 8 August were 3.77%, 3.04% and 5.44% respectively, Asif said. This did not eventually sustain and the market fell below the levels of 5 August. The key lesson is that eventually fundamentals will drive markets, he said.

Nevertheless, events such as elections are important. Uncertainty is the enemy of financial markets and elections give some stability, Asif said. So from that logic, the reaction of the market is not entirely unwarranted. However, after the initial euphoria, it will be the actions that determine the path, he said.

On the positive side, he noted that valuations remain low, interest rates appear to have peaked and money supply growth could resume, driven by external surpluses and a widening fiscal deficit. Pressure on the government to reduce policy rates is also likely to intensify, factors he described as supportive of equities, Asif said.

Abu Ahmed, chairman of the Investment Corporation of Bangladesh, said that investors have shown strong confidence in the BNP's election manifesto. 

As a result, the market has gathered momentum and the DSE's benchmark index has posted a significant gain, he explained. Abu Ahmed expressed optimism that the upward trend will continue in the coming days.

However, he stressed that sustaining this positive momentum will depend on improvements in macroeconomic fundamentals.

Abu Ahmed said these include rationalising interest rates, accelerating export growth, attracting foreign direct investment, improving the ease of doing business ranking, strengthening the domestic investment climate and addressing structural weaknesses in a timely manner. 

Overall macroeconomic stability, he noted, will hinge on how effectively and swiftly these challenges are tackled.

The interim government has identified several fundamentally strong local and multinational companies for potential listing on the stock market, he mentioned.

The ICB chairman added that a committee formed for this purpose is already working on the initiative and has held multiple meetings with the companies concerned. 

It is expected that a BNP-led government will take this initiative forward in a more effective manner, he said, adding that without the listing of quality companies, investor participation is unlikely to deepen, nor will it be possible to attract meaningful foreign investment.

Therefore, whoever assumes the role of finance minister must prioritise work in this area, Abu Ahmed said. "From our side, we will remain consistently active as a pressure group to ensure these measures are implemented."

BNP-linked stocks lead the rally

City Bank led the turnover chart as its shares worth Tk80 crore were traded with the price jumping by 8.52% to Tk29.30 on the day. Its two directors, Rubel Aziz and Aziz Al Kaiser, are sons of the late Abul Hashem, a former member of parliament from the BNP.

National Bank surged 9.76% to Tk4.50. The lender is associated with businessman Abdul Awal Mintoo, who won the Feni-3 seat as a BNP candidate in the election.

Mintoo's other listed company, Kay & Que, rose 8.74% to Tk470.50. Pragati Insurance gained 6.16% to Tk81, Pragati Life Insurance rose by 5.13% to Tk243.70, while Dulamia Cotton Spinning Mills climbed 4.39% to Tk138.

Dhaka Bank jumped 9.63% to Tk14.8. BNP leader Mirza Abbas, who won from Dhaka-8, is a sponsor shareholder of the bank, and his son serves as a director.

Investors have shown strong confidence in the BNP's election manifesto. As a result, the market has gathered momentum and the DSE's benchmark index has posted a significant gain.

Abu Ahmed, Chairman, ICB

Textile manufacturer Monno Fabrics soared 9.87% to Tk24.5. Its chairman, Afroza Khanom, won from Manikganj as a BNP candidate. 

Sister concern Monno Ceramic advanced 9.25% to Tk90.90, while Monno Agro and General Machinery rose 7.35% to Tk397.50.

Other BNP-linked stocks, including ACME Laboratories, Quasem Industries, Saiham Cotton, Saiham Textile and Dacca Dyeing and Manufacturing Company, also posted notable gains during the session.

In contrast, shares of companies perceived to be linked to the Jamaat-e-Islami moved in the opposite direction. 

Islami Bank Bangladesh fell 4.99% to Tk49.50, while Ibn Sina Pharmaceutical Industry declined 2.97% to Tk336.

Traders said the election outcome has significantly influenced investor sentiment, with the BNP's sweeping victory boosting buying interest in stocks associated with party leaders and sponsors, while shares tied to rival political affiliations faced selling pressure.