Stocks Surge as New Fiscal Reforms Boost Investor Confidence

The Bangladesh stock market started the week on a strong note this Sunday, with the benchmark index crossing the 5,800-point threshold for the first time in nearly two years. Investors reacted positively to a suite of market-friendly fiscal measures and regulatory reforms aimed at revitalizing the capital market.

By 11:00 am, the DSEX, the prime index of the Dhaka Stock Exchange (DSE), climbed 49 points (0.85%) to reach 5,853. This rally was driven by aggressive buying of large-cap and fundamentally strong stocks. Investor participation was equally robust, with turnover hitting Tk 5.40 billion within the first hour of trading.

Market analysts attribute this surge to the recently passed Finance Bill 2026. The bill introduced key incentives, including

Reduced taxes on dividend income. Removal of investment ceilings for tax rebates on mutual fund investments. Simplified listing requirements for companies seeking to raise capital.

The appointment of Masud Khan as the new Chairman of the Bangladesh Securities and Exchange Commission (BSEC) has further bolstered sentiment. Under his leadership, the regulator has focused on transparency, removing floor prices for specific shares, and strengthening market surveillance.

The positive trend was broad-based, with 247 issues advancing and only 98 declining. The Chittagong Stock Exchange (CSE) also saw gains, with its benchmark CASPI index rising 20 points. While high interest rates remain a challenge, the ongoing reform momentum suggests a shift toward a more efficient and attractive investment environment.