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Stocks ended higher on Tuesday, as bargain hunters took positions in lucrative stocks, riding on the news of a capital gains tax cut for individual investors.
Market analysts said investors showed increased buying appetite based on the tax cut and the latest earnings and dividend declarations, as some listed companies posted hefty profits and declared higher dividends.
Regulatory efforts to restore investor sentiment, including the formation of a committee to investigate the reasons behind the recent downtrend, also boosted investor confidence to some extent.
The prime index of the Dhaka Stock Exchange (DSE) increased by 112.52 points to settle at 5,365.
The interim government has decided to reduce the tax on investors making over Tk 5 million in profits from stock market trading to 15 per cent for the current and upcoming fiscal years.
The blue-chip index DS30, which tracks 30 prominent companies, rose by 30.17 points to 1,967.76, while the DSES Index, which represents Shariah-compliant companies, increased by 29.18 points to 1,191.58.
Turnover, a crucial indicator of market activity, stood at Tk 8.40 billion, up 48.56 per cent from the previous trading day.
The majority of stocks saw price increases, with 304 out of 399 issues closing higher, 65 ending lower, and 30 remaining unchanged on the DSE trading floor.
Square Pharmaceuticals was the most-traded stock, with shares worth Tk 332.24 million changing hands, followed by The ACME Laboratories Limited, Linde Bangladesh Limited, Bangladesh Shipping Corporation, and Islami Bank Bangladesh.
The Chittagong Stock Exchange (CSE) also ended higher, with its All Share Price Index (CASPI) increasing by 292 points to settle at 14,877, and the Selective Categories Index (CSCX) gaining 180 points to settle at 9,055.
The port city bourse traded 3.04 million shares and mutual fund units, with a turnover volume of Tk 59.93 million.