Stocks ended higher on Tuesday, extending the previous session's gains as growing investor confidence, driven by recent regulatory reforms and supportive fiscal measures, outweighed concerns over the possibility of renewed geopolitical tensions in the Middle East.

The benchmark DSEX index of the Dhaka Stock Exchange gained 44.69 points, or 0.76 per cent, to close at 5,911.24.

The day's index was the highest in 23 months, since August 14, 2024, when the index stood at Tk 5953.

Market operators said investor sentiment has continued to strengthen following the passage of the Finance Bill 2026, which introduced a range of incentives aimed at revitalising the country's capital market. They also noted that recent reform initiatives announced by the securities regulator have reinforced expectations of a more efficient and transparent market.

Analysts said the budgetary measures are expected to make equity investments 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.

The DS30 index, comprising leading blue-chip companies, increased 24 points to 2,227, while the DSES index, which tracks Shariah-based stocks, increased 10.24 points to 1,207.

Market participation improved on Monday, with turnover on the Dhaka Stock Exchange (DSE) rising to Tk 16.51 billion from Tk 14.19 billion in the previous session.

Gainers outnumbered Losers on the DSE floor. Of the 393 issues traded, 199 closed higher and 137 ended lower, while 57 remained unchanged.

The Chittagong Stock Exchange also ended higher, with its All Shares Price Index (CASPI) gaining 67.5 points to 15,778 while the Selective Categories Index (CSCX) rose 38.6 points to 9,673.

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