Dhaka Stock Exchange fell for the third trading session on Tuesday with the its key index, DSEX, hitting five-and-half month low as dissatisfied investors continued to sell shares fearing further fall in the market. DSEX fell by 0.45 per cent, or 19.88 points, to stand at 4,338.87 points on Tuesday, the lowest after 4,330.63 points on January 7 this year. Market operators said pessimistic approach prevailed since the finance minister AMA Muhith’s placed the budget proposals for the financial year 2014-2015 as investors found nothing positive for the capital market.
Moreover, the government in the proposed budget imposed fresh tax on investors’ gain from the capital market and scraped some tax benefits which dejected investors, they said.
Besides that, Muhith’s comment regarding the capital market investors’ also dashed investors’ sentiment.
Finance minister on Thursday had told reporters that many of the country’s share market investors were ‘fatkabaz’ (touts).
Investors’ reaction over the comment was reflected on the market on Sunday, the immediate next day of the remark, as the key index fell by 1.07 per cent or 47.21 points.
The operators said that the volatility in the stock market might prevail till the final approval of the proposed budget as the government was yet to finalise its stance on gain tax issue.
They also said that the market might face more volatility if the government high-ups made any negative comment.
On the other hand, government’s decision to scrap gain tax or any other positive declaration regarding the capital market might help investors to regain confidence, they predicted.
Turnover of the bourse declined to Tk 263.52 crore on Tuesday compared with Tk 319.36 crore in the previous trading session.
DS30, the blue-chip index of the bourse, closed at 1,605.46 points, shedding 0.76 per cent or 12.39 points.
The shariah index of DSE, DSES, slipped to 1,001.18 points, falling 0.82 per cent or 8.61 points.
Of the 292 shares and mutual funds traded on Tuesday, 102 advanced, 145 declined and 45 remained unchanged.
‘The bourse lost 72 points, sequentially in last four sessions and dragged DSEX down to its five & half months’ base of 4,339,’ IDLC said in its daily market commentary.
‘Meanwhile, indecisiveness amid investors remained persistent and continued slicing market sentiment,’ it said.
‘However, scrip-centric positioning and profit taking in-phases was observed throughout the session,’ said IDLC.
Lafarge Surma Cement led the turnover chart on Tuesday as its shares worth Tk 34.79 crore changed hands.
Grameenphone, BSRM Steels, Square Pharmaceuticals, BEXIMCO, Peninsula Chittagong, Bangladesh Submarine Cable Company, Heidelberg Cement, AB Bank and MJL Bangladesh were among other turnover leaders.
Share prices of Kohinoor Chemicals advanced the most, adding 8.51 per cent, while Pragati Life Insurance lost the most, 6.61 per cent.
-With New Age input
