The DSE’s daily revenue jumped 48% from the previous session to Tk 839 crore.

Stocks jumped for the second straight day, with the key Dhaka bourse index hitting a 13-day high following a recent capital gains tax cut that boosted confidence investors.

On Tuesday, the DSEX, the broad index of the Dhaka Stock Exchange (DSE), gained 112 points, or 2.1 per cent, to 5,365, while the blue-chip index DS30 gained 30 points to close at 1967.

Market turnover jumped 48 per cent to Tk 839 crore, marking its highest level in 48 days as investor participation intensified. The market capitalization of DSE also increased by Tk 5,865 crore, reaching Tk 6.72 lakh crore.

Of the stocks traded, 304 rose, 65 fell and 30 remained unchanged.

In its daily market analysis, EBL Securities noted that the capital exchange benchmark index extended its winning streak, driven by positive investor sentiment following the recent reduction in capital gains tax rate , which continued to stimulate activity on the trading floor.

Building on the positive momentum from the previous trading session, buyers continued to dominate market activity throughout the trading session despite some short-term profit-taking, leading the market to a recovery after its recent slowdown, added EBL Securities.

However, he cautioned that the sustainability of this upward trend depends on listed companies’ earnings reports for the July-September quarter, as well as broader political and economic stability.

The National Board of Revenue (NBR) has set a tax rate of 15% on annual capital gains exceeding Tk 50 lakh from purchase and sale of shares of listed companies, irrespective of the detention period. Previously, a tax rate of 30% (effective rate of 40.5% with markup) applied to shares sold within five years of purchase, while shares held for more than five years were taxed at 15%. (20.25% with surcharge).

In its statement, the tax authority expressed optimism that domestic and foreign investors would be more inclined to invest in the country’s capital market following the reduction in the maximum income tax rate and the surcharge from 40.50% to 20.25% (rate applied to high incomes). (high net worth individual taxpayers) for the period from July 1, 2024 to June 30, 2025.

SM Galibur Rahman, head of research and strategic planning at Shanta Securities, told The Business Standard that the announcement sent a positive response to the market.

Abdul Kader Nabil, Head of Corporate and Intermediaries Department at LankaBangla Securities, meanwhile, highlighted the need for further reforms, including a reduction in the dividend tax rate, which he identified as a significant challenge for the market capital.

EBL Securities said Islami Bank was the largest contributor to the index’s rise, adding 37 points, followed by Square Pharma, Renata, Beacon Pharma and Best Holdings.

Sectorally, pharmaceutical products contributed the most to total turnover, with 21.5%, followed by banks with 17.1% and textiles with 8%. Most sectors posted positive returns, with the travel, life insurance and ceramics sectors posting the highest gains on the stock market.

Fu Wang Food topped the list of gainers as its share price jumped 10% to Tk14.3, followed by Rupali Life Insurance and National Life Insurance. Conversely, Lovello Ice-Cream was the biggest loser, with unit price down 5.12% to Tk88.8 each, followed by United Finance and Peninsula Chittagong.