Markets Rebound as election timetable lifts investor confidence

The benchmark index of the Dhaka Stock Exchange closed the week on a positive note, recovering nearly half of the losses incurred in the previous week, as the announcement of the national election schedule lifted investor sentiment.

Market analysts said the clarity surrounding the upcoming elections eased political uncertainty and provided much-needed relief to the otherwise sluggish market.

Investor confidence improved significantly after the Election Commission on Thursday formally announced that the national election would be held on February 12, 2026. The development triggered renewed buying interest, particularly in battered stocks.

Macroeconomic indicators also contributed to the improved sentiment. Stabilising foreign exchange reserves, rising export earnings, and sustained remittance inflows helped reinforce confidence in the broader economic outlook.

The market rebound was underpinned by gains across most sectors, as opportunistic investors returned in search of short-term profit opportunities.

The week began on a weak footing amid heavy selling pressure, with cautious investors awaiting clearer political signals. However, bargain hunters soon stepped in, targeting undervalued stocks. Of the five trading sessions, the market closed higher on three days and lower on two.

The DSEX index gained 77 points, or 1.58 per cent, to settle at 4,964 at the end of the week. The blue-chip DS30 index advanced 12 points to 1,903, while the Shariah-based DSES index rose 10 points to close at 1,034.

According to EBL Securities, although the market initially carried forward bearish momentum from the previous week, expectations of greater political clarity encouraged investors to accumulate undervalued shares. However, concerns related to political uncertainty and ongoing financial sector reforms remain key risks.

Gains in several blue-chip stocks — including BRAC Bank, ACI, Pubali Bank, Prime Bank and Walton — significantly contributed to the index rise, together adding 13 points to the DSEX.

Despite the overall positive trend, analysts cautioned that ‘Z’ category stocks dominated the weekly top gainers’ list, raising concerns about possible speculative activity. Six junk stocks — Zeal Bangla Sugar Mills, Regent Textile, Northern Jute, HR Textile, First Finance and Usmania Glass — surged between 20 and 30 per cent during the week.

Market liquidity remained steady, with total weekly turnover rising slightly to Tk 20.88 billion from Tk 20.57 billion a week earlier. The average daily turnover stood at Tk 4.18 billion, compared to Tk 4.11 billion in the previous week.

Sector-wise, pharma stocks attracted the highest investor participation, accounting for 15 per cent of total turnover, followed by textiles (13.6 per cent) and engineering (12.9 per cent).

Gainers overwhelmingly outpaced losers. Of the 391 issues traded, 333 advanced, 36 declined and 22 remained unchanged.

Most major sectors ended in positive territory, with non-bank financial institutions posting the highest gain of 4 per cent, followed by power, food, banking, engineering and pharmaceuticals. The telecom sector was the lone underperformer, shedding 2.6 per cent.

Orion Infusions topped the turnover chart, with shares worth Tk 850 million traded, followed by Simtex Industries, Dominage Steels, Khan Brothers PP Woven Bag Industries and Fine Food.

The Chittagong Stock Exchange also rebounded during the week. Its All Shares Price Index (CASPI) rose 124 points to close at 13,871, while the Selective Categories Index (CSCX) gained 78 points to end at 8,551.

The port city bourse traded 16.42 million shares and mutual fund units, recording a total turnover of Tk 688 million.