The stock market rebounded today after a brief correction, supported by growing investor optimism over expected favorable fiscal measures in the upcoming national budget.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) gained 36.5 points to close at 5,519, up from 5,483 in the previous session.

Market observers noted that expectations of tax incentives and policy support aimed at boosting private sector activity helped restore confidence and encouraged buying in fundamentally strong stocks.

Throughout the trading session, the market maintained a positive tone, driven by broad-based gains across most sectors. Continued buying interest in insurance stocks was particularly notable, as investors targeted momentum-driven opportunities and short-term gains.

Sentiment remained steady even after the recent withdrawal of floor price restrictions on the remaining two heavyweight stocks, allowing the index to sustain its upward movement.

Total turnover on the DSE rose sharply by 29.4 percent to Tk 13.9 billion, compared with Tk 10.7 billion in the previous session, indicating stronger trading activity.

General insurance stocks dominated turnover with 24.4 percent of total transactions, followed by engineering (11.8 percent) and pharmaceuticals (9.4 percent).

Sector performance was mixed overall. Services rose by 4.4 percent, financial institutions advanced by 3.1 percent, and general insurance gained 2.6 percent. However, declines were seen in miscellaneous stocks, which fell by 4.4 percent, while cement and food sectors dropped by 1.2 percent and 0.7 percent respectively.

Out of 396 traded issues, 241 advanced, 94 declined, and 61 remained unchanged.

Meanwhile, the Chittagong Stock Exchange also closed higher. The Selective Categories Index (CSCX) edged up by 0.8 points, while the All Share Price Index (CASPI) increased by 3.0 points.