B Mirror Report: The Dhaka Stock Exchange’s (DSE) benchmark index continued to rise for the fourth consecutive week, supported by hopes for a favorable market trajectory and expected political stability after the national election.

Ahead of Thursday’s elections, market watchers observed that investor confidence remained strong, which resulted in new accumulation in large-cap equities, particularly in the banking sector, on expectations of structural reforms under the incoming government.

After winning a landslide majority in the 13th legislative election, the BNP-led coalition is set to establish the next government. Following the overwhelming victory, market players expressed hope that the political shift would strengthen confidence among domestic and foreign investors, indicating a return to political and economic stability.

In order to promote capital market involvement, BNP Chairman Tarique Rahman had promised in the party manifesto to guarantee excellent governance, improve institutional effectiveness, and implement investment-friendly tax policies.

Buyers continued to dominate the trading floor throughout the week, leading to broad gains across all sectors for the fourth week in a row. A prominent brokerage house credited widespread investor participation, bolstered by savvy purchases of fundamentally strong stocks, for the long-term rebound.

The banking industry continued to lead, accounting for about 19% of total revenue. The segment’s 3.5% weekly gain demonstrated how crucial it is to driving overall market performance.

Due to the bourse’s closure on Wednesday and Thursday for the election, trading was limited to three sessions. The week began with a mild profit-booking after earlier gains, but the final two sessions closed with robust advances.

Consequently, the DSEX benchmark index finished the week up 166 points, or 3.16 per cent, settling near the 5,400 mark. Over the past month, the DSEX has climbed 381 points, while total market capitalisation expanded by Tk 247 billion to reach Tk 7.09 trillion.

According to weekly analysis by EBL Securities, the market demonstrated resilience ahead of the election break, extending its bullish streak as investors positioned themselves in promising stocks on expectations of a favourable post-election environment.

The blue-chip DS30 index, comprising 30 leading companies, advanced 57 points to 2,059, while the Shariah-based DSES index added 25 points to close at 1,097.

Selective banking and pharmaceutical stocks including BRAC Bank, Beximco Pharma, National Bank, Prime Bank, and Renata played a significant role in lifting the market, jointly contributing 39 points to the DSEX rise. BRAC Bank alone added over 12 points to the prime index after its share price rose 4 per cent during the week. Beximco Pharma contributed 8.1 points, followed by National Bank and Prime Bank.

However, because there were fewer trading sessions, the total turnover decreased to Tk 19.15 billion from Tk 26.73 billion the week before. The average daily turnover was Tk 6.38 billion, which was 5% less than the Tk 6.68 billion from the previous week. At the DSE, advancing issues vastly outnumbered decliners. Out of the 390 traded equities, 29 closed down, 8 stayed the same, and 353 ended higher.

The majority of important industries saw gains. The largest increase was 6% for non-bank financial institutions, followed by telecommunications, banking, power, food, and pharmaceuticals. With shares worth Tk 545 million, BRAC Bank was the most traded stock. The next in line were Simtex Industries, Dominance Steel, Asiatic Laboratories, and Islami Bank.

Additionally, the Chittagong Stock Exchange (CSE) ended the day in a favorable state. The Selective Categories Index (CSCX) increased 150 points to 9,272, while the All Shares Price Index (CASPI) surged 303 points to 15,034. A turnover of Tk 246 million was produced by the trading of 7.48 million shares and mutual fund units at the Port City Bourse.