Dhaka stocks declined on Thursday after rising for three trading sessions as investors became shaky following the finance minister AMA Muhith’s remark that the government will scrape the scope of legalising undisclosed money from the next fiscal budget.
The key index of the Dhaka Stock Exchange, DSEX, declined to 4,555.11 points, shedding 0.44 per cent or 20.39 points.
In line with the last three trading sessions’ positive vibe, the DSEX on Thursday started in positive increasing to 4,597.59 points in the first 35 minutes of trading with a gain of 22 points.
But the market started to fall as soon as different media began flashing news that finance minister at a meeting with business community announced that there would be no scope of legalising undisclosed money in the next budget, they said.
The DSEX after next 45 minutes of trading lost around 40 points to turn negative with decline in share prices of most of the traded scrips but recovered slightly in late trading, they said.
The government in the outgoing fiscal budget allowed legalising undisclosed money in different sectors including the capital market with 27.50 per cent tax.
The government in the budget, however, scraped a special scope of investing undisclosed money at capital market by paying 10 per cent tax as a few had taken the facility in previous years.
Due to the shakiness, the turnover of the bourse declined by around 17 per cent as some investors decided to take a wait-and-see stand to make their next investment move, said operators.
DS30, the blue-chip index of the bourse, fell by 0.70 per cent, or 11.78 points, to close at 1,666 points on the day.
The Shariah index of DSE, DSES, finished at 1,012.92 points, declining 0.19 per cent or 1.98 points.
The turnover of the bourse declined by 16.94 per cent to Tk 348.14 crore compared with Tk 419.13 crore in the previous trading session.
Shares of 286 companies and mutual funds were traded on the day of which 109 advanced, 145 declined and 32 remained unchanged.
‘The market demonstrated a mixed trading pattern, as the staring enthusiasm sedated over time,’ IDLC Investments said in its daily market commentary.
‘Consequently, the bourse ended flat again, closing prime index DSEX at 4,555 points,’ it said.
‘During the day, stock specific movements were notable, while investors were switching to lucrative valued scrips,’ it said.
‘But general investors’ participation was poor, turning down turnover by 17 per cent to Tk 350 crore,’ said IDLC.
Grameenphone led the turnover chart as its shares worth Tk 24.33 crore changed hands.
Meghna Petroleum, Bangladesh Submarine Cable Company, Matin Spinning, Lafarge Surma Cement, Square Pharmaceuticals, Padma Oil, Emerald Oil Industries, Heidelberg Cement BD and Golden Son were among other turnover leaders.
Eastern Cables gained the most on Thursday as its share prices increased by 9.99 per cent, while Second ICB Mutual fund lost the most shedding 8.32 per cent.
-With New Age input
