Dhaka stocks declined significantly on Sunday, first trading session of the week, following demoralising comments made by the finance ministry high-ups on the capital market and stock investors on Thursday, market operators said. The key index of Dhaka Stock Exchange, DSEX, finished at 4,361.58 points, shedding 1.07 per cent or 47.21 points. Finance minister AMA Muhith after holding a meeting with the stock market operators on Thursday told reporters that many of the country’s share market investors were ‘touts’.
‘Investors are shaky as they have got nothing positive for the capital market in the proposed budget. Rather, the newly-imposed gain tax on individual investors becomes a major concern for them,’ said Mohammad Musa, professor (School of Business) at United International University.
The proposed finance bill for the financial year 2014-2015 imposed 3-5 per cent gain tax on individual investors.
‘Besides, the latest comment made by the finance minister might have intensified pessimism among investors as they have felt that the government insulted them by terming them “touts”,’ he said.
Along with these, the finance ministry officials on Thursday also said that the Financial Action Task Force had advised that the share market operators should look into the suspected transactions and know the detailed about clients to prevent money laundering in the capital market and that remark also made investors nervous, market operators said.
‘Lately, investors seemed focusing on market level dynamics,’ IDLC Investments said in its daily market commentary.
In absence of any significant issues, waves of profit booking flooded the market, it said.
‘Eventually, support level of 4,400 points had to give away, losing 47 points, succumbing to the large selling pressure,’ said IDLC.
‘Meanwhile, after neutralising budget-specific issues, investors started thinking about upcoming half-yearly and yearly earnings/corporate declarations,’ it said.
Besides, their persistent wait-and-see approach caused activity to freeze, IDLC added.
DS30, the blue-chip index of the DSE, closed at 1,618.20 points, slipping by 1.21 per cent or 19.87 points.
Turnover of the bourse dropped to Tk 314.16 crore on Sunday from Tk 368.76 crore in the previous trading session.
Of the 291 shares and mutual funds traded, 47 advanced, 212 declined and 32 remained unchanged.
Peninsula Chittagong closed at Tk 36.70 a share with a 22.33-per cent increase in its share price on its debut at the bourse.
The offer price of each share of Peninsula was set at Tk 30 including Tk 20 premium.
Grameenphone led the turnover leaders on the day with its shares worth Tk 41.25 crore changing hands. Peninsula was the second on the chart with Tk 32.54 crore.
-With New Age input
