Election Outcome Sparks Rally in Stock Market; Political Links Influence Share Prices

The results of the 13th National Parliamentary Election have had an immediate impact on the country’s capital market. On the first trading day following the election, Sunday saw a strong surge in both the index and turnover during the opening hour.

At the Dhaka Stock Exchange (DSE), the benchmark index DSEX climbed 126 points, or nearly 2.5 percent, within the first hour of trading. This pushed the index back above the 5,500-point mark. During the same period, turnover exceeded Tk 417 crore.

As of 11:00 am, DSEX stood at 5,527 points — its highest level in the past five months. The previous peak was recorded on September 9 last year, when the index reached 5,538 points. On February 10, the last trading session before the election, total daily turnover was Tk 790 crore. In contrast, Sunday’s trading crossed Tk 400 crore within just the first hour. Market insiders believe that if this momentum continues, total turnover could surpass Tk 1,500 crore by the end of the day.

In Thursday’s election, the BNP secured a single-party majority with 209 seats, while Jamaat-e-Islami won 68 seats. The market reaction appears closely tied to these results.

Within the first 45 minutes of trading, Dhaka Bank topped the turnover chart, with shares worth approximately Tk 32.5 crore changing hands. The stock price hit its daily upper limit, rising by Tk 1.30 (10 percent) to reach Tk 14.80 per share. Founding sponsors of the private bank include BNP Standing Committee member Mirza Abbas and members of his family. Market observers suggest that the BNP’s electoral victory contributed to heightened investor interest in the bank’s shares.

Munno Fabrics, a company under the Munno Group, ranked third in turnover during the first hour. The group’s chairperson, Afroza Khanam, won a parliamentary seat from Manikganj as a BNP candidate. Analysts believe her victory played a significant role in the company’s share price increase. Munno Fabrics’ stock rose by the daily maximum of 10 percent, or Tk 2.20, reaching Tk 24.50 per share, with nearly Tk 12 crore worth of shares traded within the first hour.

On the other hand, shares of Islami Bank, widely regarded as affiliated with Jamaat-e-Islami interests, declined at the start of trading. Within the first hour, the bank’s share price fell by 5 percent, or nearly Tk 2.50, settling at Tk 49.70. Similarly, Ibn Sina Pharmaceuticals — also associated with leaders linked to Jamaat — saw its share price drop by more than 3 percent, losing over Tk 11 during the same period.

Market participants say the post-election trend clearly reflects political influence. Investors appear to be favoring listed companies connected to BNP leaders and newly elected lawmakers, while shares of companies associated with Jamaat-e-Islami figures are facing selling pressure. According to analysts, this pattern underscores the direct impact of election results on investor sentiment.