Dhaka stocks rise 3.77%, a 3.5-year high

Stocks in Bangladesh posted a massive rise today amid hopes of a revival of the market following the resignation of Sheikh Hasina from the post of prime minister.

The DSEX, the key index of the Dhaka Stock Exchange (DSE), surged 197 points, or 3.77 percent – the highest-ever gain in 3.5 years – to 5,426.

Today was the first day of trading after the fall of the Awami League-led government amid protests over the killing of more than 300 people, arrests of thousands of people centring the government job quota reform movement by students.

The DS30, representing blue-chip stocks, soared 75 points, or 4 percent, to 1,934 while the DSES, the Shariah-based index, advanced 32 points, or 2.86 percent, to 1,176.

"Investors are optimistic about the return of good governance in the market after the resignation of Sheikh Hasina," said a mid-level official of a leading stock brokerage firm seeking anonymity.

"So, they bought stocks, prices of which had been low for many years. People's participation in the trading also rose amid optimism," he added.

Turnover, which indicates the liquidity flow in the market, soared 262 percent from the previous day to Tk 750 crore today.

Among the traded issues, 328 advanced, 60 declined and 9 remained unchanged.

The Chittagong Stock Exchange surged too.

The Caspi, the broad index of the port city bourse, rallied 467 points, or 3 percent, to 15,393.

Meanwhile, Bangladesh Securities and Exchange Commission Chairman Prof Shibli Rubayat-Ul Islam did not come to the office today.

The stockmarket regulator also postponed its commission meeting scheduled to take place tomorrow.