Stocks rebound as investors cheer anticipated poll dates

Stocks on the Dhaka Stock Exchange (DSE) bounced back on Monday (8 December) after a recent downturn. According to market insiders, investors responded positively to expectations that the national election schedule will be announced between 8–15 December. However, overall trading activity remains below typical levels.

Market turnover surged by 36.19% to Tk365 crore, compared to Tk268 crore in the previous session, reflecting a moderate recovery in investor participation. 

The benchmark DSEX index gained 34 points to close at 4,906. The blue-chip DS30 index rose 7 points to settle at 1,893, while the Shariah-based DSES index added 7 points to end at 1,028.

Out of 391 traded issues, 287 advanced, 53 declined, and 51 remained unchanged, indicating a broad-based recovery across the market.

Analysts said that political uncertainty remains the most crucial issue influencing the stock market. Institutional investors and large individual investors have largely stayed away from active participation, which has continued to keep trading volume below its potential level. If this uncertainty gradually eases, the market is expected to move in a more positive direction.

They also said that expectations surrounding the elections could strengthen investor confidence once the schedule is officially announced. Political clarity generally encourages stronger market participation, which helps stabilise prices and supports sustained market recovery.

They also pointed out that after several consecutive weeks of price declines, the market has entered an oversold territory. As a result, many fundamentally strong stocks are now trading at discounted valuations. Some cautious yet opportunity-driven investors have started taking fresh positions, expecting potential gains in the near future.

According to market insiders, the recent downturn was not driven by political uncertainty alone. The enforcement of new margin loan regulations forced many investors to liquidate their holdings, intensifying the recent sell-off and placing additional downward pressure on market prices.

Among the top gainers on the day, Rahima Food Corporation rose by 10%, followed by Hamid Fabrics, which also jumped 10%, and Zeal Bangla Sugar, which advanced 9.98%. On the losing side, FAS Finance dropped 8.64%, Familytex (BD) fell 8.33%, and Bd. Thai Aluminium declined 7.31%.

Orion Infusion, Orion Infusion, Asiatic Laboratories, and Simtex Industries were the most actively traded stocks on Monday, indicating strong investor interest in these counters.

All large-cap sectors posted positive performance. The NBFI sector recorded the highest gain of 0.82%, followed by Engineering (0.77%), Banking (0.58%), Pharmaceuticals (0.55%), Food & Allied (0.49%), Fuel & Power (0.29%), and Telecommunications (0.13%). Block trades accounted for 3.4% of the total market turnover.

The Chittagong Stock Exchange (CSE) also closed in positive territory. The CSCX index edged up to 8,450, while the CASPI index rose 14 points to close at 13,699, reflecting positive sentiment across both major bourses.