Stocks gain as worries ease after election

Stocks made gains yesterday as investors became optimistic of improvements in the business climate following Sunday's peaceful national elections, which dismissed apprehensions of confrontations among major political parties.

The DSEX, the benchmark index of the main bourse, Dhaka Stock Exchange (DSE), edged up 25.34 points or 0.40 percent from that on the last trading day on Thursday to close at 6,269.51 yesterday.

Shares made gains at Chittagong Stock Exchange (CSE) too.

Market movement was driven by positive changes in the market capitalisation of travel and leisure, paper and printing, and bank scrips, said Shanta Securities in its daily market review.

Turnover, an indicator of the flow of liquidity in the market, increased 28 percent at the DSE to Tk 441 crore yesterday.

"There was concern among many investors over whether the parliamentary polls will take place peacefully. As the election was held without any violence, investors' confidence rose," said DSE Director Richard D' Rozario.

Banks booked the highest gain of 0.94 percent yesterday followed by non-bank financial institutions (NBFIs) and pharmaceuticals, according to a daily market update of BRAC EPL Stock Brokerage.

Some banks booked higher earnings which boosted their shares, explained Rozario.

Investors were more active yesterday than what they have been in the recent past, said Shekh Mohammad Rashedul Hasan, managing director and chief executive officer at UCB Asset Management.

"It appears that there is a renewed optimism among investors after the election that the business environment will be better going forward. We will monitor the market to confirm the trend," he said.

Rozario said the increased in turnover was vital for the market. This will give more confidence to the investors, he added.

Yesterday Bd Thai Aluminum Ltd topped the turnover chart at the DSE followed by Intraco Refueling Station Ltd.

Moreover, Midland Bank made the highest gain while Standard Ceramic lost the most.