Stocks opened higher on Monday, extending the previous session's rally, as renewed investor optimism over capital market-friendly fiscal measures, expectations of regulatory reforms, and repeated government commitments to developing the market continued to boost sentiment.

By 11:30 am, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), had gained 37 points, or 0.64 per cent, to 5,887, supported by strong buying in large-cap and fundamentally sound stocks.

Market operators said investor confidence has continued to improve following the passage of the Finance Bill 2026, which introduced a series of incentives aimed at revitalising the capital market.

The Finance Bill, recently passed by Parliament, 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 funds through the stock market.

Analysts said these measures are expected to enhance the attractiveness of equity investments, encourage greater participation by both retail and institutional investors, strengthen the mutual fund industry, and facilitate companies' access to long-term capital through the capital market.

Investor participation also remained robust. Turnover on the premier bourse reached Tk 5.26 billion within the first one and a half hours of trading, reflecting sustained buying interest.

Market breadth remained firmly positive, with 234 issues advancing, 94 declining, and 61 remaining unchanged by 11:30 am, indicating broad-based gains across most sectors.

The Chittagong Stock Exchange (CSE) also traded higher in early trading. Its benchmark index, CASPI, rose 120 points to 15,713, while the CSCX index advanced 75 points to 9,635.

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