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Dhaka stocks hit 10-month high as blue chips react to budgetary boosts
15 Jun 2026
Source: The Financial Express

The benchmark index of the Dhaka Stock Exchange (DSE) surpassed the 5,600-point threshold in the post-budget session on Sunday for the first time in nearly 10 months, as investors reacted positively to a series of budgetary measures.

Finance Minister Amir Khosru Mahmud Chowdhury proposed a range of policy measures aimed at reviving private-sector growth and promoting long-term capital market development, which gave a confidence boost to investors.

The market index tracked a firm upward trajectory from the outset of the session. As the session progressed, investor participation intensified, with buying interest remaining strong.

Eventually, the benchmark index of the DSE surged 105 points, or 1.90 per cent, to settle at 5,625, reflecting renewed investor confidence amid expectations of improved corporate profitability, enhanced market liquidity and stronger institutional participation.

Market analysts said the rally was driven by a combination of fiscal incentives, tax relief measures and regulatory reform initiatives aimed at deepening the capital market and attracting long-term investment.

Among the key proposals welcomed by investors are the conversion of tax deducted at source (TDS) into an advance tax mechanism, reductions in withholding taxes on several business inputs, simplification of listing procedures and measures to strengthen market governance.

Banks, telecom operators, pharmaceuticals, fuel distributors, power companies, electronics manufacturers and automobile producers are likely to emerge as the biggest beneficiaries of the proposed measures.

The budget also proposed allowing foreign investors to repatriate profits and transfer proceeds from shares purchased through non-resident investor taka accounts within one working day, a move to improve market participation by foreign investors and help deepen the market.

Akramul Alam, head of research at Royal Capital, said the overall budget framework is supportive of the capital market, although effective implementation and continued policy support are key for sustainable development of the capital market.

He added that expectations surrounding the newly formed securities commission's reform agenda also helped strengthen market sentiment, as investors anticipate greater transparency, fair pricing and stronger governance.

The market also received a boost from improving global sentiment following the announcement of a ceasefire in the Middle East. As global uncertainties seemed to wane, investors continued accumulation of beaten-down stocks.

In another development, Bangladesh Bank provided Tk 25 billion in special liquidity support to Islami Bank Bangladesh on Sunday to help the country's largest Shariah-based lender overcome an acute cash shortage.

Following the news, Islami Bank's stock jumped 9.97 per cent to Tk 32 per share on Sunday, after a sharp decline since the removal of the floor price. Islami Bank alone added 18.3 points to the prime index during the session.

The FY27 budget also proposed strengthening the capital market as an alternative financing source through simplification of listing procedures, development of alternative investment instruments, and gradual shortening of the trade settlement cycle.

According to EBL Securities, the market momentum remained upbeat, supported by expectations that budgetary measures would improve business confidence, stimulate investment and enhance corporate profitability.

Market stakeholders, including the Dhaka bourse, welcomed the proposed budget, saying the measures would help develop the country's capital market and create a more investment-friendly environment.

In a statement, DSE Chairman Mominul Islam said the proposed tax reliefs, market reforms and sector-specific incentives are expected to support corporate profitability, improve cash flows and encourage investment.

"These developments have generated renewed optimism among investors and market participants," he said, adding that the government's proactive approach towards capital market reforms has created fresh expectations for a more stable, transparent and vibrant market.

All but three blue-chip stocks posted gains on Sunday. The DS30 index, comprising blue-chip companies, jumped 47 points to 2,120, while the DSES index, which tracks Shariah-based stocks, rose 14 points to 1,129.

Market participation on the premier bourse remained robust, with total turnover standing at Tk 13.58 billion, a 10 per cent increase over the previous session, as buying interest spread across banking, financial, engineering and pharmaceutical stocks.

Gainers strongly outnumbered losers. Of the 392 issues traded on the DSE, 246 advanced, 96 declined and 50 remained unchanged.

Major sectors posted gains. Non-bank financial institutions led the gains with a 4.4 per cent rise, followed by banking, power, food, pharma, engineering and telecom.

The Chittagong Stock Exchange (CSE) also ended higher. Its All Share Price Index (CASPI) rose 147 points to 15,343, while the Selective Categories Index (CSCX) jumped 91 points to 9,411.

 
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