DSEX surges over 160 points in first 2 hours of trading after BNP’s election victory

The Dhaka Stock Exchange witnessed a sharp rally in the first two hours of trading today (15 February), driven by investor optimism following the landslide victory of the BNP in the 13th national election.

The benchmark DSEX index advanced 169 points to 5,569 by 12:20pm, while turnover reached Tk714 crore, reflecting heightened trading activity.

Market insiders said investor confidence fuelled the strong performance after the BNP secured a parliamentary majority and is set to form the next government.

Shares of companies linked to BNP leaders and sponsors led the rally.

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 5.22% to Tk455.3. Pragati Insurance gained 4.33% to Tk79.6, while Dulamia Cotton Spinning Mills climbed 2.95% to Tk136.1.

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.

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 7.93% to Tk89.8, while Monno Agro and General Machinery rose 4.73% to Tk387.8.

Other BNP-linked stocks, including ACME Laboratories, Quasem Industries, 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 2.3% to Tk50.9, while Ibn Sina Pharmaceutical Industry declined 2.4% to Tk338.

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.

ICB chair hopes upward trend will continue 

Abu Ahmed, chairman of the Investment Corporation of Bangladesh (ICB), told The Business Standard 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. He 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 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 chair 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 said. "From our side, we will remain consistently active as a pressure group to ensure these measures are implemented."