Stock market surges on first trading day after elections
The stock market rebounded sharply on the first trading day following the national parliamentary elections. Within minutes of opening, the Dhaka Stock Exchange’s (DSE) main index, DSEX, rose by more than 100 points.
In the first five minutes alone, shares and units of over fifty companies hit their upper price limit (circuit breaker), creating what market participants described as a “powder keg of expectations” fueled by long-awaited optimism.
Market analysts attributed the surge to investor confidence stemming from the peaceful conduct of the elections and expectations of swift policy direction from the new government. In the months leading up to the elections, the market had remained stagnant due to uncertainty, liquidity constraints, and lack of confidence, leaving many investors on the sidelines. After the results, they began re-entering the market.
At the opening, banking, financial institutions, insurance, and large-cap company shares saw strong buying pressure. Officials from brokerage houses noted that the relative scarcity of sellers pushed prices upward quickly. Many described this as a “relief rally” driven by the easing of uncertainty.
Analysts also highlighted that, beyond political stability, investors will closely watch the new government’s steps on economic reforms, interest rate policy, dollar market stability, and institutional investment. If the announced reforms show signs of rapid implementation, the upward trend could sustain for some time.
However, experts cautioned that long-term market growth will depend on corporate earnings growth, transparency, and effective regulatory oversight. Small investors expressed optimism at seeing positive market reactions after a long time, though some warned that quick profit-taking could create short-term volatility.
Overall, the market’s enthusiasm immediately after the elections demonstrates how quickly the capital market can respond once political uncertainty is removed. The key question now is whether this “powder keg of expectations” will lead to lasting gains or remain a temporary surge.
Trading on Sunday began with most companies’ share prices rising. DSEX rose 130 points at the start of trading, and within five minutes, shares and units of over fifty companies reached their upper price limits. By then, DSEX had gained 156 points.
Subsequently, the upward momentum slowed for some companies, slightly moderating the overall index rise. As of 10:20 am, 352 companies saw their share prices or units increase, 15 saw declines, and 13 remained unchanged. Consequently, DSEX closed up 111 points. The other indices moved as follows: DSE-30 rose 40 points, and the DSE Shariah Index increased by 15 points. Total trading on DSE amounted to Tk 225.83 crore.
On the Chittagong Stock Exchange (CSE), the CASPI index rose 119 points, with transactions worth Tk 2.21 crore. Among the 46 companies that traded, 39 saw their prices rise, six fell, and one remained unchanged.