DSEX jumps to highest single-day gain of 2026 on election optimism
Election optimism lifts DSEX 1.58%, marking the year’s biggest single-day gain
The benchmark index of the Dhaka Stock Exchange (DSE) posted its strongest single-day gain of 2026 yesterday (9 February), as investors rushed to take early positions ahead of the national election, buoyed by growing optimism over political clarity and expectations of continued capital market reforms under the next government.
The DSEX jumped 1.58%, gaining 82 points to close at 5,311, marking the sharpest one-day rise this year. The rally brought the index close to its recent peak of 5,337, recorded on 8 October 2025, and reflected a decisive shift in investor sentiment after weeks of cautious trading.
Broad-Based Rally and Rising Turnover
Market breadth was overwhelmingly positive, with 327 advancing issues against 37 decliners, while 33 stocks remained unchanged. Turnover rose 35% to Tk646 crore, driven by participation from both retail and institutional investors.
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The surge added around Tk3,300 crore to the Dhaka bourse's market capitalisation in a single session, highlighting renewed confidence in equities.
According to EBL Securities, investors were motivated by the opportunity to take early positions in momentum-driven and undervalued stocks, encouraged by expectations of a favourable market trend following improved political clarity. Buyers dominated trading from the outset, maintaining control throughout the day, leading to broad-based gains across sectors.
Analysts noted that the announcement of the election schedule and clearer signals from political parties on economic and market reforms encouraged investors to return to equities more decisively after a prolonged period of subdued sentiment.
Sector Highlights
Banking stocks led trading activity, accounting for 20.6% of total turnover, as investors bet on improved profitability and policy support. Pharmaceutical shares contributed 15.7%, while textile stocks made up 15.6%, indicating broad-based interest across key industrial sectors.
Minhaz Mannan Emon, director of the Dhaka Stock Exchange, told The Business Standard that reforms by the Bangladesh Securities and Exchange Commission (BSEC) under the interim government have played a key role in rebuilding investor confidence. These initiatives include improving the quality of IPOs, strengthening market discipline, curbing manipulation through amended IPO, margin loan, and mutual fund rules, and taking action against major market manipulators.
Although earlier reforms did not trigger a sustained rally, investor sentiment has strengthened after the country's two major political parties separately addressed the capital market in their election manifestos, according to Ashequr Rahman, managing director of Midway Securities. Investors are hopeful that whichever party forms the government will honour commitments to market reforms, ensuring a more stable and predictable policy environment.
Top Gainers and Broad Participation
Trading activity centred on large-cap and actively traded stocks, with Simtex Industries, Asiatic Laboratories, Dhaka Bank, Islami Bank, and Bangladesh Shipping Corporation emerging as the top traded counters. Non-bank financial institutions led sectoral gains with a 2.6% rise, followed by textile and cement stocks, each advancing 2.4%.
Individual gainers included Sharp Industries, AB Bank, LankaBangla Finance, IFIC Bank, and Premier Bank, reflecting strong buying interest across manufacturing and financial sectors. Some profit-taking occurred in stocks like Islami Bank and Al-Arafah Islami Bank, as well as select mutual funds and industrial shares, causing minor price corrections.
Market participants said the broad-based nature of the rally indicates a healthy recovery rather than a narrow speculative surge confined to a few stocks.
