The benchmark index of the Dhaka Stock Exchange (DSE) crossed the 5,900-point threshold for the first time in nearly two years on Tuesday as investors continued to cheer a series of regulatory reforms and government policy support.
The DSEX advanced 44.36 points, or 0.76 per cent, to close at 5,911 -- its highest level since early August 2024 -- extending its winning streak to a fourth straight session.
During the period, the benchmark index gained 141 points, while the market capitalisation increased by about Tk 105 billion.
Market operators said investor optimism over ongoing reforms outweighed concerns about the possibility of renewed geopolitical tensions in the Middle East, allowing the market to sustain its upward momentum.
"The combination of supportive fiscal policies and regulatory reforms has created a more favourable investment climate, encouraging investors to gradually increase their exposure to equities," said Akramul Alam, head of research at Royal Capital.
He said expectations surrounding the proposed revision of margin loan rules, along with measures to improve market liquidity through faster share settlement and the introduction of scrip netting, encouraged broad-based buying across sectors.
The market opened strongly and maintained its momentum throughout the session as sustained buying in large-cap stocks pushed the benchmark index above the psychologically important 5,900-point level.
Investor confidence has strengthened noticeably since renowned chartered accountant Masud Khan assumed office as chairman of the Bangladesh Securities and Exchange Commission (BSEC) in early June.
Since taking office, the new commission has introduced several market-friendly measures, including removing floor prices from the remaining two stocks, restoring stock exchanges' authority to determine circuit breakers, strengthening market surveillance, and approving the introduction of intra-day trading.
The regulator has also initiated a review of margin lending rules to make them more investor-friendly and announced plans to simplify public issue regulations alongside introducing a direct listing framework for eligible private companies.
"The regulator's reform initiatives have created positive expectations among investors, who believe the market is moving towards a more transparent, efficient and well-governed environment," said Mr Alam.
The blue-chip DS30 index rose 24 points to 2,227, while the Shariah-based DSES index gained 10 points to 1,207.
Large-cap stocks led the rally, with BRAC Bank, LafargeHolcim Bangladesh, Square Pharmaceuticals, Beximco Pharmaceuticals and BSRM Steels together contributing about 18 points to the benchmark index's gain.
Trading activity also gathered pace, with turnover on the DSE climbing 16 per cent to Tk 16.51 billion on Tuesday from the previous session.
Market breadth remained positive as 199 issues advanced, 137 declined and 57 remained unchanged.
The cement sector led the gainers with a 3.5 per cent rise, followed by banking, pharmaceuticals, food, telecommunications, non-bank financial institutions and engineering stocks.
Lavello Ice Cream was the day's most-traded stock with shares worth Tk 750 million changing hands, followed by Bangladesh Shipping Corporation, Malek Spinning Mills, LafargeHolcim Bangladesh and IPDC Finance.
The Chittagong Stock Exchange also finished higher. Its CASPI gained 67 points to 15,778, while the CSCX advanced 38 points to 9,673.
babulfexpress@gmail.com