Dhaka stocks gained sharply last week with increase in turnover as the investors turned optimistic with hope of market-friendly budgetary measures for the next financial year.
Average daily turnover of the DSE increased heavily last week by 96.50 per cent to Tk 585.48 crore compared with previous week’s Tk 297.96 crore.‘Budgetary expectations and regulatory relaxation-driven optimism stayed as core driving force of the rally amid apparent eased up political frontier,’ commented IDLC Investments in its weekly market analysis.
DSEX, the benchmark general index of Dhaka Stock Exchange, gained 3.87 per cent or 150.06 points, to close at 4,028.13 points.
The previous benchmark general index of the bourse, DGEN, gained 4.88 per cent or 200.33 points, to close at 4,300.74 points.
DSE’s blue-chip index, DS30, gained 5.19 per cent or 73.99 points, to close at 1,500.73 points.
The finance minister Abul Maal Abdul Muhith on Thursday proposed to increase the limit of tax-free dividend income from the capital market up to Tk 10,000 from the existing Tk 5,000 for the financial year 2013-2014.
He proposed to scrap the existing 3 per cent taxes on initial public offering premium for the companies to be listed with the capital market.
Muhith also proposed 15 per cent tax rebate against investment in the private mutual funds and scrapping 0.05 per cent taxes on source for selling bonds.
Market operators said investors remained optimistic following hope that government would announce positive budgetary measures for the stock market which lifted the market.
‘The budgetary measures are aimed at boosting the companies willing to get listed and the mutual fund sector. It offered very little for the small-scale investors,’ said a stockbroker.
Of the 290 traded issues last week, 190 advanced, 79 declined and 21 remained unchanged.
All the major sectors posted hefty gains in the week with telecommunications sector hitting the top by gaining 8.61 per cent, followed by fuel and power that gained 5.93 per cent.
Pharmaceuticals gained 3.79 per cent, non-bank financial institutions 3.53 per cent and bank gained 2.56 per cent.
United Airways was the week’s most traded stock last week with shares worth Tk 135.18 crore changing hands.
The other turnover leaders were Titas Gas, Bangladesh Submarine Cable Company, Square Pharmaceuticals, Meghna Petroleum, Unique Hotel, Orion Pharma, Summit Purbanchol Power, Grameenphone and Active Fine Chemicals.
-With New Age input