The benchmark index of the Dhaka Stock Exchange (DSE) closed higher on Sunday as investors welcomed the proposed budgetary incentives and reform measures aimed at revitalising the capital market.

Finance Minister Amir Khosru Mahmud Chowdhury on Thursday unveiled a set of capital market-friendly measures in the proposed budget, including tax concessions, regulatory reforms and sector-specific incentives aimed at improving corporate profitability, strengthening cash flows and attracting fresh investment.

Market operators said investor optimism has been rising amid expectations that the newly appointed leadership of the Bangladesh Securities and Exchange Commission (BSEC) will prioritise greater market transparency, stronger corporate governance and the restoration of investor confidence.

The government's repeated assurances of revitalising the stock market have further lifted sentiment, encouraging investors to increase their exposure to equities.

Against this backdrop, the benchmark index of the Dhaka Stock Exchange (DSE), DSEX, advanced 105 points, or 1.90 per cent, to close at 5,625 points.

The benchmark index crossed the 5,600-point mark for the first time in nearly nine and a half months, although it remained below the 5,636-point level recorded on September 7, 2025, the last occasion when the index had closed at a higher level.

The DS30 index, comprising leading blue-chip companies, increased 46.90 points to 2,120, while the DSES index, which tracks Shariah-based stocks, increased 14.35 points to 1,129.

On Thursday, market participation improved, with turnover on the DSE rising to Tk 13.58 billion, compared with Tk 12.39 billion in the previous session.

Gainers outnumbered Losers on the DSE floor. Of the 392 issues traded, 246 closed higher and 96 ended lower, while 50 remained unchanged.

The Chittagong Stock Exchange also ended higher, with its All Shares Price Index (CASPI) increasing 147.62 points to 15,343, while the Selective Categories Index (CSCX) increased 91 points to 9,441.

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