Stocks inch up as optimism builds ahead of the election

Stocks edged higher yesterday, reversing recent losses, as optimism about developments ahead of the forthcoming national election lifted investor sentiment.

However, despite the rise in share prices across most scrips on the Dhaka Stock Exchange (DSE), turnover, a key indicator of market activity, fell as overall investor participation remained muted.

According to DSE data, the benchmark DSEX index gained 21.98 points to close at 4,963. The DSE Shariah Index added 2.74 points to end at 1,034, while the DS30 blue-chip index advanced 4.19 points to finish at 1,903. Turnover declined by 13% to Tk463 crore. Of the securities traded, 262 advanced, 64 declined, and 66 remained unchanged, according to the data.

EBL Securities noted in its daily commentary that the DSEX closed in positive territory as investors responded to renewed optimism linked to political developments ahead of the polls. Despite a sluggish opening, indices gained strong upward momentum mid-session as opportunistic investors targeted perceived undervalued stocks, allowing the market to end firmly higher.

Market data showed that trading opened on a positive note, with the DSEX up about 20 points by 10:12am. Subsequent sell-offs pushed the index into the red, where it remained until 11:23am. From there, the market rebounded steadily to close with a 21.98-point gain.

Yeakin Polymer topped the day's gainers, rising 9.58% to Tk18.3 a share, followed by Deshbandhu Polymer up 9.25% to Tk17.7, and VFS Threads also up 9.25% to Tk11.8. On the losing side, Premier Leasing led the decliners, dropping 8.45% to Tk0.65 a share. Meghna Petroleum fell 8.08% to Tk192.1, while FAS Finance lost 5.81% to Tk0.81.

The Chittagong Stock Exchange (CSE) also closed higher, with the Selective Categories Index (CSCX) rising 12 points and the All Share Price Index (CASPI) gaining 20.6 points.