Political links spark rally in Kay & Que, Monno Group shares
Analysts advised retail investors to focus on valuations and underlying financial performance
Shares of several politically linked companies drew strong buying interest on the Dhaka Stock Exchange (DSE) yesterday, with Kay & Que (Bangladesh) Limited and three Monno Group firms ranking among the session's top gainers.
Kay & Que topped the gainers' chart, surging 8.74% to close at Tk434 per share.
Market participants attributed the sharp rise to speculative sentiment following the company's chairman, Abdul Awal Mintoo, to contest the 2026 parliamentary election from the Feni-3 constituency.
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Mintoo, a former president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and a vice chairman of the BNP, is a prominent figure whose political developments often influence investor interest in his associated firms.
Similarly, Monno Group companies enjoyed a notable rally. Monno Agro Industries advanced 7.11% to close at Tk364.1, while Monno Fabrics gained 6.73% to end at Tk22.2. Monno Ceramics also added 4.12%, finishing the day at Tk83.3 per share.
Investors linked the rally to expectations surrounding Afroza Khan Rita, chairperson of Monno Group of Industries, as a BNP candidate for the Manikganj-3 constituency, prompting short-term traders to build positions amid evolving political developments.
Market analysts, however, cautioned that such rallies are frequently driven by speculation rather than underlying financial fundamentals. They noted that in the run-up to national elections, stocks associated with politically active entrepreneurs often draw significant attention, leading to heightened volatility.
Analysts advised retail investors to focus on valuations and underlying financial performance, warning that politically driven price surges can reverse quickly once speculative heat cools down.
