Dhaka stocks jump 161 points as Iran ceasefire inspires optimism

News of the Iran-US ceasefire has boosted the Bangladeshi stock market, which has surged alongside markets around the world.

The DSEX, the main bourse of the Dhaka Stock Exchange (DSE), rose by 161 points in a single day on Wednesday.

As a result, the market capitalisation increased by Tk 95 billion in a day.

At the end of the day, the index stood at 5,317 points, up from 5,156 points the previous day. The index had dropped by more than 107 points on Sunday.

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), says: “Investors in the stock market have stepped up trading due to optimism following the news of the Iran ceasefire.”

Previously, the DSE index had risen by 200 points on Feb 15. And on Mar 10, it had risen by 148 points.

With the jump in the index, the DSE market capitalisation increased to around Tk 6.92 trillion, up from 6.82 trillion the previous day.

Trading volume also took off, with shares worth Tk 9.91 billion traded on the exchange, up from Tk 5.97 billion the previous day.

Shares from 393 companies were traded on Wednesday.

Of these, the prices of 367 increased, those of 15 decreased, and 11 remained unchanged.

US and Israeli attacks on Iran on the last day of February kicked off a broad conflict in the Middle East that has had a major impact on world markets.

Bangladesh, thousands of kilometres away, still felt the tremors. But news of a ceasefire seems to have also had positive repercussions.

On Tuesday, Khondoker Rashed Maqsood, the chairman of capital market regulator Bangladesh Securities and Exchange Commission (BSEC), had met with the Bangladesh Bank Governor Mostaqur Rahman.

Investors believe this may have also contributed to Wednesday's surge.

Saiful Islam, president of the DSE Brokers Association of Bangladesh (DBA), an organisation of brokerage houses, told bdnews24.com: “News of the ceasefire has given hope to investors. Now that fuel supplies will increase, companies will do business. Investors think that this will ease uncertainty.”

The pharmaceutical and chemical sectors accounted for the most trading throughout the day, followed by the engineering and banking sectors.

At the end of the day, the highest closing price increases on the DSE were recorded by Bangaz Limited, BD Lamps and Khan Brothers PP Oven Bag Industries. The prices of Dhaka Dyeing, Techno Drugs and Apex Spinning declined the most in the day’s trading.