Dhaka stocks advanced for the third trading session on Wednesday due to investors’ expectation that the government would review capital market-related budget proposals.
The 24 per cent increase in foreign direct investment in 2013 was another reason which encouraged investors to participate on the trading floor on the day, said market operators.
The turnover of the Dhaka Stock Exchange increased to Tk 337.72 crore on Wednesday from Tk 280.53 crore in the previous trading session.
The key index of DSE, DSEX, closed at 4,403.64 points, adding 0.24 per cent or 10.70 points.
Of the 297 shares and mutual funds traded, 200 advanced, 73 declined and 24 remained unchanged.
Operators said that the market was on the rise for the last three trading session mainly due to the expectation that the government would review the budget proposals relating to the capital market.
As per the proposed finance bill, 3 per cent tax will be slapped on the individuals with more than Tk 10 lakh capital gain in a year, while the gain tax will be 5 per cent if an individual earns more than Tk 20 lakh a year from the capital market.
Besides, the government also proposed to scrap the 10 per cent tax rebate for the listed companies which declare 20 per cent or more dividends for their shareholders.
Despite increase of 67.34 per cent traded shares and mutual funds, the market gained marginally due to investors’ profit-taking move from the banks’ shares after recent increase in the share prices, operators said.
They said textile sector gained the most as the sector attained the lion’s share of the FDIs of the country in 2013.
While food and allied and non-bank financial institutions sectors followed the chart with 0.95 per cent and 0.72 per cent gain respectively.
DS30, blue-chip index of the bourse, finished at 1,619.31 points, increasing by 0.30 per cent or 4.93 points.
The Shariah index of the DSE,DSES, increased by 0.64 per cent, or 6.48 points, to close at 1,007.23 points on the day.
‘Tri-session long positivity stimulated investors’ re-thinking, creating a pool of upside potential,’ IDLC Investments said in its daily market commentary.
Additionally, news of 24 per cent increase in FDI knocked their attention very favourably, it said.
‘The 26 per cent contribution of FDI in textile and weaving, approached investors to hold their positioning,’ it said.
‘Resultantly, the sector topped at performance list and gained by 1.02 per cent,’ IDLC said.
Besides, participation got momentum from positive market related issues, it said.
Share of Lafarge Surma Cement traded the most with its shares worth Tk 25.44 crore changing hands.
Wata Chemicals advanced the most with an 8.72-per cent increase in its share price, while Samata Leather Complex lost the most, shedding 4.81 per cent.
-With New Age input
