Stocks rally on expectations of political stability

Stocks closed on an upbeat note on Tuesday—the last trading day before the 13th National Parliamentary Election on Thursday—amid expectations of a more dynamic capital market driven by political stability. 
Market insiders said investor confidence strengthened as the political situation surrounding the election remained relatively stable. This has encouraged fresh investment, and against the backdrop of the national election and long-term development plans, the capital market has begun to regain momentum.
They noted that the market had seen little improvement over the past one and a half years. Despite reforms bringing changes to laws and regulations, there have been almost no new company listings or significant fresh investments. As a result, share prices of most companies have fallen to bottom levels, prompting investors to show greater interest in low-capitalised and fundamentally weak companies trading at lower prices.
Continuing this trend, trading on Tuesday ended with a sharp rise in indices at both the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE). Turnover increased at both bourses compared to the previous session, while prices of shares and mutual fund units of most traded companies advanced.

According to DSE sources, the benchmark DSEX index gained 87.99 points to close at 5,399. The DSE Shariah Index rose by 19.46 points to 1,096, while the DS30 index advanced by 27.38 points to 2,058.
A total of 392 companies’ shares and units were traded on the DSE, with prices rising for 288 companies, declining for 67 and remaining unchanged for 37. Total turnover stood at Tk790.15 crore, up from Tk646.16 crore in the previous session.
At the CSE, the CSCX index climbed 137.29 points to settle at 9,272. The overall CASPI index rose by 241.55 points to 15,034, the Shariah Index gained 16.37 points to 919, and the CSE-30 index increased by 232.78 points to 13,567.
A total of 203 companies’ shares and units were traded on the CSE. Prices rose for 166 companies, fell for 24 and remained unchanged for 13. Turnover at the port city bourse amounted to Tk9.40 crore, compared to Tk8.85 crore in the previous trading session.

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