Stock market rallies after Budget proposal

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Stock market rallies after Budget proposal

The country’s stock market posted a strong rally in its first trading session following the announcement of the proposed national budget for fiscal year 2026-27, with major indices recording significant gains and trading activity increasing.

On Sunday, the benchmark index of the Dhaka Stock Exchange (DSE) surged by more than 100 points, while turnover exceeded Tk 1,300 crore. The Chittagong Stock Exchange (CSE) also witnessed a substantial rise in its indices. Banking, financial institutions and insurance companies played a key role in driving the market upward.

Market insiders said that several capital market-friendly initiatives in the proposed budget, along with changes in the tax structure, have helped restore investor confidence. As a result, buying pressure increased sharply, leading to a strong market performance on the first trading day after the budget announcement.

On June 11, Finance Minister Amir Khasru Mahmud Chowdhury presented a proposed budget of Tk 9.38 trillion for FY2026-27. Stock market stakeholders immediately described the budget as supportive of the capital market.

Market analysis showed that trading on Sunday began with gains in the prices of most listed shares and mutual fund units, resulting in a steady upward trend in the indices throughout the session.

At the close of trading, prices of shares and units of 246 companies advanced, while 96 declined and 50 remained unchanged.

In the banking sector, share prices of 28 banks rose, while only two declined and one remained unchanged. In the financial institutions sector, 16 companies posted gains, five declined and two remained unchanged. In the insurance sector, share prices of 47 companies increased, while eight declined and three remained unchanged.

The DSE’s benchmark index, DSEX, climbed 104 points to close at 5,625 points. The DSE Shariah Index gained 14 points to reach 1,129 points, while the DS30 Index, comprising blue-chip companies, rose 46 points to 2,119 points.

Turnover on the DSE also increased, reaching Tk 1,358.47 crore, compared with Tk 1,238.66 crore in the previous session, marking an increase of Tk 119.81 crore.

At the CSE, the overall CASPI index advanced by 147 points. Of the 248 companies traded, 141 posted gains, 71 declined and 36 remained unchanged. Turnover stood at Tk 24.21 crore, compared with Tk 34.33 crore in the previous trading session.

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