Stocks opened higher on Thursday, driven by bargain hunting in undervalued blue-chip shares as investor sentiment improved on hopes of positive market developments and easing Middle East tensions.
The rally was also driven by a combination of fiscal incentives, tax relief measures and regulatory reform initiatives aimed at deepening the capital market and attracting long-term investment, market analysts said.
Investor sentiment received an additional boost from improving global market confidence after the announcement of a ceasefire in the Middle East, prompting renewed buying appetite amid easing geopolitical concerns.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) climbed 38 points, or 0.68 per cent, to 5,659 by 11:00 am, reflecting renewed investor confidence following the announcement of the ceasefire.
The United States and Iran said they had reached an agreement to end hostilities and reopen the Strait of Hormuz, sending a wave of relief through global financial markets and easing concerns over potential disruptions to energy supplies.
The government's repeated commitment and budgetary incentives to revitalising the stock market have further improved sentiment, prompting many investors to increase their exposure to equities.
Turnover on the premier bourse reached Tk 3.33 billion within the first hour of trading, indicating strong investor participation.
Market breadth remained firmly positive, with 263 issues advancing, 76 declining and 52 remaining unchanged.
National Feed Mills topped the turnover chart, with shares worth Tk 196 million changing hands by 11:00 am.
The Chittagong Stock Exchange (CSE) also saw a positive trend at the opening. Its benchmark CASPI index gained 26 points to 15,276, while the CSCX index rose 17 points to 9,340 in early trading.
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