Stocks opened higher on Wednesday, extending the previous session's gains as investor confidence strengthened following a series of market-supportive regulatory reforms and fiscal measures.

The Bangladesh Securities and Exchange Commission (BSEC) on Tuesday approved several investor-friendly initiatives, including the introduction of scrip netting for intraday trading and amendments to the Margin Rules aimed at making margin lending more flexible and investor-friendly, which further boosted investor confidence.

By 11:00 am, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), had gained 54 points, or 0.91 per cent, to 5,965, supported by strong buying in large-cap and fundamentally sound stocks.

Market operators said investor sentiment has remained upbeat following the budgetary measures announced by the government, which include a range of incentives designed to revitalise the country's capital market. They added that the latest regulatory reforms have further reinforced expectations of a more efficient, transparent and liquid market.

Analysts said the fiscal and regulatory measures are expected to make equity investment more attractive, encourage greater participation from both retail and institutional investors, strengthen the mutual fund industry, and enable companies to raise long-term funds more efficiently through the capital market.

Trading activity also remained buoyant. Turnover on the premier bourse reached Tk 5.15 billion within the first hour of trading, reflecting sustained buying interest across major sectors.

Market breadth remained firmly positive, with 237 issues advancing, 105 declining and 43 remaining unchanged by 11:00 am, indicating broad-based gains across the market.

ACI Formulations was the most-traded stock by value till then, with shares worth Tk 210 million changing hands.