Stocks ended higher on Monday, driven by renewed investor optimism following recent capital market-friendly fiscal measures and regulatory reforms.

The benchmark DSEX index of the Dhaka Stock Exchange gained 17 points, or 0.30 per cent, to close at 5,866.

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.

The DS30 index, comprising leading blue-chip companies, increased 2.35 points to 2,203, while the DSES index, which tracks Shariah-based stocks, increased 4.32 points to 1,196.80.

Market participation reduced on Monday, with turnover on the Dhaka Stock Exchange (DSE) falling to Tk 14.19 billion from Tk 16.69 billion in the previous session.

Gainers outnumbered Losers on the DSE floor. Of the 394 issues traded, 181 closed higher and 165 ended lower, while 48 remained unchanged.

The Chittagong Stock Exchange also ended higher, with its All Shares Price Index (CASPI) increasing 118.32 points to 15,711, while the Selective Categories Index (CSCX) increased 74.78 points to 9,635.

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