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Stocks surged sharply on Thursday driven by investors making fresh investments in lucrative blue-chip shares amid recent political developments in the country.
The prime index of the Dhaka Stock Exchange (DSE) rose by 306 points, to close at 5,925 on the day, marking the highest level seen in the past four and a half months.
The DSEX increased by 5.45 per cent on Thursday, the largest single-day gain in 54 months. The last time the index saw such a substantial rise was on January 19, 2020, with an increase of 5.6 per cent.
Over the past three days, the DSEX has gained 696 points, or 12.76 per cent, the highest increase since the new index was introduced in 2013.
Investors are optimistic about a potential return to good governance in the market following the resignation of Sheikh Hasina, according to market experts. This optimism has fuelled the market rally, particularly benefiting fundamentally strong and blue-chip stocks.
The upward rally in the country’s capital market continues as the relentless buying spree remains prevalent across the trading floor, riding on the rebounded optimism owing to positive expectations over the recent changes in the country’s political environment, according to EBL Securities.
The blue-chip index, DS30, which tracks 30 prominent companies, saw an increase of 110.56 points, reaching 2,132. The DSES Index, which represents Shariah-based companies, rose by 55.77 points, ending at 1,275.
Turnover, a key market indicator, reached Tk 16.1 billion, up 107 per cent from the previous trading day and the highest in the past 4.5 months.
Most stocks experienced price increases; of the 398 issues traded, 364 closed higher, 27 ended lower, and 7 remained unchanged. City Bank was the most-traded stock, with shares worth Tk 638.59 million changing hands, followed by British American Tobacco, Techno Drugs Ltd, Square Pharmaceuticals, and Sea Pearl Beach Resort & Spa Limited.
The Chittagong Stock Exchange (CSE) also saw gains, with its All Share Price Index (CASPI) rising 862 points to settle at 16,800, and the Selective Categories Index (CSCX) gaining 522 points to end at 10,132.
The port city bourse on Thursday traded 8.63 million shares and mutual fund units, with a turnover volume of Tk 226.89 million.