Special Report :
The Bangladesh stock market is experiencing a significant resurgence following the recent political upheaval and the establishment of an interim government.
his remarkable turnaround comes after the departure of the Sheikh Hasina-led Awami League government, which stepped down amid widespread protests and calls for political reform.
The Dhaka Stock Exchange (DSE) has been the epicenter of this financial resurgence, with the DSEX, the main index, witnessing an unprecedented rise. Over the past week, the DSEX surged by 591 points, representing an 11.08 per cent increase, closing at 5,925 points.
This marks a sharp recovery from the previous week’s close of 5,334 points. The surge has been fueled by renewed investor confidence, bolstered by the hope of improved governance and political stability under the interim government.
In addition to the overall index, the DS-30 index, which tracks the top 30 companies on the DSE, climbed by 232 points to close at 2,133 points, while the Shariah-compliant DSES index saw an increase of 110 points, ending the week at 1,275 points. These gains reflect a broad-based rally across various sectors, with a particularly strong performance in large-cap stocks.
Investor enthusiasm has been palpable, with the daily average transaction value on the DSE skyrocketing by 74.34 per cent during the week under review. The total transaction value reached Tk 3,340 crore, up from Tk 2,395 crore in the previous week.
Market insiders attribute this surge to a renewed appetite for fundamentally strong stocks, spurred by optimism over the country’s evolving political landscape.
The sector-wise performance underscores the diversity of the rally. The pharmaceuticals and chemicals sector led the charge, accounting for 20 per cent of the total market transactions, followed closely by the banking sector at 16.8 per cent, and the food and allied sector at 11.3
per cent.
Notably, the telecommunications sector posted the highest returns at 25.9 per cent, followed by financial institutions with 25.6 per cent, food with 19.8 per cent, and mutual funds with 17.2 per cent.
This wave of optimism has not been confined to the Dhaka Stock Exchange alone. The Chittagong Stock Exchange (CSE) also experienced a significant uptick, with its CASPI index rising by 11.12 per cent, closing at 16,799 points.
The CSCX index similarly surged by 11.18 per cent, ending the week at 10,132 points. The total transaction value on the CSE soared to Tk 260 crore, compared to just Tk 40 crore the previous week.
Market analysts are attributing this robust performance to several factors.
Chief among them is the political transition, which has instilled a sense of hope among investors for more stable and transparent governance.
Additionally, the influx of capital into the market reflects a growing confidence in the potential for economic recovery under the interim administration.