Govt tax collection from the bourse falls
The net overseas investment at the Dhaka Stock Exchange fell by 54 per cent or Tk 230.39 crore in October compared with that in the previous month as the foreign investors opted to go slow after the recent surge in share prices. The foreign investment at the DSE declined to Tk 195.86 crore in October compared with that of Tk 426.25 crore in the previous month, a DSE data released on Monday showed.
In October, the overseas investors bought shares worth Tk 302.88 crore against their share sales of Tk 107.01 crore.
The overseas investors in September bought shares worth Tk 589.60 crore against their share sales of Tk 163.35 crore.
Former Bangladesh Merchant Bankers Association president Mohammad A Hafiz told New Age that the overseas investors were always opportunist as they used to buy shares when the market falls and sell shares when the market goes up.
As the market was up for the last couple of months, the overseas investors reduced their participation at the trading floor in October, he said.
Brac EPL Investment managing director Khaled Yusuf Farazi told New Age that overseas investors usually invested on around 30-40 stocks including some multinational companies.
The overseas investors increase their participation at the bourse when they get those shares cheap, he said.
On the other hand, if the price earning ratios of those stocks become high, they reduce their participation at the market, Farazi said.
As the market surged sharply in recent times, the overseas investors might have opted to go slow to take their next investment move, he said, adding that the overseas investors were very much optimistic about the country’s stock market.
The overseas investors in October traded shares worth Tk 409.89 crore compared with that of Tk 752.95 crore in the previous month.
Meanwhile another DSE data released on the day showed that the government’s tax collection from the DSE fell by 6.45 per cent or Tk 8.91 crore in October.
The DSE in October paid the government Tk 23.33 crore in taxes on turnover and gain tax from sponsors-directors’ share sales.
The figure was Tk 24.94 crore in the previous month.
The DSE collects the tax as brokerage commission at 0.05 per cent rate and at 5 per cent tax from the sponsors-directors’ capital gain on share sales, and then submits the tax to the National Board of Revenue
-With New Age input
