Stocks ended higher on Tuesday, extending the market's recent rally as investors responded positively to the Finance Bill 2026, which introduced a series of capital market-friendly tax measures aimed at attracting fresh investment and deepening the country's equity market.
The benchmark index of the Dhaka Stock Exchange (DSEX) advanced 40.29 points, or 0.70 per cent, to close at 5,762.83 points.
This marks a one-year, nine-month high for the index, though it still falls just short of the 5,777-point level last seen on September 24, 2024.
The upbeat sentiment followed the passed of the Finance Bill 2026 in Parliament on Monday. The legislation reduced taxes on dividend income, removed the investment ceiling for claiming tax rebates on investments in mutual funds, and eased listing requirements for companies seeking to raise capital from the stock market.
Market participants believe the measures will improve the attractiveness of equity investments, encourage greater participation by retail and institutional investors, strengthen the mutual fund industry, and facilitate fundraising through the capital market.
The tax incentives, coupled with expectations of increased liquidity and improved investor confidence, prompted broad-based buying across key sectors during the opening session.
The DS30 index, comprising leading blue-chip companies, increased 11.92 points to 2,178, while the DSES index, which tracks Shariah-based stocks, increased 11.39 points to 1,168.
On Tuesday, market participation improved, with turnover on the DSE raising to Tk 15.74 billion, compared with Tk 13.52 billion in the previous session.
Gainers outnumbered Losers on the DSE floor. Of the 397 issues traded, 249 closed higher, 94 ended lower, while 54 remained unchanged.
farhan.fardaus@gmail.com