Dhaka bourse surges over 25pts in sign of hope after polls
FE REPORT | Tuesday, 9 January 2024
DSEX, broad index of the Dhaka Stock Exchange (DSE), surged 25.3 points to settle at a two-month high of 6,270 points on Monday after the national election.
Considering it as a good sign, market operators have expressed optimism about the restoration of investors' confidence as uncertainty regarding the national polls is over.
The DSE opened the day's session with a positive note, and the number of gainers surpassed losers within an hour.
The broad index exhibited an upward movement within one and a half hours, a trend that persisted till the day's closure.
Apart from the broad index, the DS30 index comprising blue chip securities also advanced marginally.
The turnover volume rose 28 per cent to Tk 4.41 billion, riding on a jump in investor participation.
The president of the DSE Brokers Association, Bangladesh (DBA), Saiful Islam said stock markets in different countries usually behave positively after a national election.
"Uncertainty of the country's national election is over and it would restore investors' confidence," Mr. Islam said.
He added that the problems engulfing the market would be addressed gradually and its benefits would be visible in the market.
Most of the Monday's gainers were small and mid-cap companies, while some blue chip stocks closed green.
The blue-chip companies, which experienced price appreciation, included Eastern Housing, LafargeHolcim Bangladesh, and Unique Hotel & Resorts.
Managing Director of IDLC Securities Md. Saifuddin said the market did not deserve to be in a depressed situation that it had been suffering from so long.
Sector- or stock-wise interactions were affected as there was no price discovery in the market.
"Now the floor price should be lifted soon," Mr Saifuddin said.
Investors' participation was concentrated on particular stocks of the banking and engineering sectors because of their lucrative price levels.
"Most investors felt somewhat relieved from the prevailing tensions on the political front, although overall market sentiment has yet to recover across the trading floor," said EBL Securities in a market review.
Of the total issues traded on Monday, 119 advanced, 44 declined and 169 remained unchanged.
The travel & leisure sector experienced the highest rise of 1.5 per cent in terms of market value.
Midland Bank was the number one gainer with an appreciation of 9.93 per cent, while Standard Ceramic Industries was the worst loser, having declined 13.5 per cent.