Dhaka Stocks Snap Election Rally as Investors Book Gains

Representational Image. Photo: Collected

Stocks on the Dhaka Stock Exchange ended their election-driven rally on Sunday, breaking a three-session winning streak as cautious investors locked in profits and shifted funds into undervalued shares.

The benchmark DSEX index fell 11 points to close at 5,590. The blue-chip DS30 dropped 9 points to 2,136, while the Shariah-based DSES declined 9 points to settle at 1,119.

Turnover slipped slightly by 0.39% to Tk1,270 crore from Tk1,275 crore in the previous session. Of the 397 traded issues, 153 advanced, 218 declined and 26 remained unchanged.

Market participants said the rally had begun ahead of the election and continued for three consecutive sessions on expectations of improved political stability. However, with several formalities related to government formation still pending, many investors chose to secure profits after the recent gains and adopt a more defensive strategy. Funds were also redirected toward fundamentally strong and undervalued companies.

Before the election, the market had faced prolonged pressure due to political uncertainty and regulatory concerns that eroded investor confidence. Retail investors largely exited, while institutional and high-net-worth investors remained cautious, leading to depressed prices even for fundamentally sound stocks.

Analysts noted that uncertainty had been the main factor shaping investor sentiment, discouraging large investments and keeping trading volumes low.

With the election now completed and a new government set to take office, analysts expect gradual improvement if policy stability and consistent decision-making are ensured. Restored confidence could attract larger investors, boost turnover and support a sustained recovery in the capital market.

Sector-wise, telecommunications recorded the largest decline, falling 1.56%, followed by engineering, food and allied, fuel and power, banking and non-bank financial institutions. In contrast, pharmaceuticals edged up 0.13%. Block trades accounted for 2.6% of total turnover.

Meanwhile, the Chittagong Stock Exchange ended on a mixed note, with the CSCX index dropping 14 points to 9,541 while the CASPI index rose 6 points to close at 15,526, reflecting mixed market sentiment.