The main index of Dhaka Stock Exchange has increased nearly one percent after the Eid-ul-Azha holiday, despite ongoing concerns about a proposed capital gains tax.

Trading activity remained sluggish, hitting its lowest level in a year.

On the first working day after the holiday, investor participation was limited, leading to reduced trading, with the number of transactions being the lowest since Feb 26, 2023.

This limited investor participation at that time came amid the devaluation of the taka, declining reserves, global recessionary fears, and political uncertainty in the lead-up to national elections.

Investors will find some relief as the DSEX increased by over 43 points or 0.85 percent to 5161.4.

Finance Minister Abul Hassan Mahmood Ali proposed a tax on capital income exceeding Tk 5 million in the budget for the fiscal year 2024-25. The stock market has been declining since rumours of this proposal began to spread.

Saiful Islam, president of the DSE Brokers Association of Bangladesh or DBA, said that "There are no investors today. Still, the index has advanced by 43 points. That's a good sign. I think it's going to be that way this week."

He added that it may take until the next week for the investors to become more active.

The stock market was closed for five days, including the two weekend holidays on Friday and Saturday, and reopened on Wednesday.

The main index, DSEX, dropped from 5,138 points to 5,120 points just 14 minutes after trading began as usual at 10am.

After 21 minutes, the index began to rise again and continued its upward movement until 11am. Then, the index dropped for a second time to 5,119 points.

As buying pressure increased, the index began to rise once more, continuing this upward trend until the end of the trading session. The main index closed the day at 5,161 points.

By the end of the day, 232 shares advanced, 96 decreased, and 64 companies were traded at their previous prices.

Electronics brand Walton contributed the most to the increase in the index, with its share price rising by 8.75 percent, adding 12.45 points to the index.

Square Pharma, Beacon Pharma, Unilever, Marico, British American Tobacco Bangladesh, and Renata PLC also contributed, each adding between 1 and 4 points to the index.