Stocks opened 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 DSEX index of the Dhaka Stock Exchange (DSE) advanced 16 points, or 0.27 per cent, to 5,738 by 11:15 am, supported by buying interest in large-cap stocks and fundamentally strong companies.

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.

Turnover on the premier bourse reached Tk 4.16 billion in the first 75 minutes of trading, reflecting strong investor participation.

Market breadth also remained firmly positive. Among the issues traded until 11:15 am, 255 advanced, 73 declined and 63 remained unchanged, indicating widespread buying interest across the market.

The banking, pharmaceutical, engineering and large-cap sectors attracted notable buying, while investors continued to accumulate fundamentally sound stocks following the recent policy support for the capital market.

In contrast, the Chittagong Stock Exchange (CSE) opened slightly lower. Its benchmark CASPI index fell 19 points to 15,332, while the CSCX index shed 13 points to 9,387 in early trading.

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