Dhaka stocks ended flat last week amid volatile trading as the investors and brokers showed mixed reaction to the budgetary measures announced by the government for the next financial year.
DSEX, the benchmark general index of the Dhaka Stock Exchange, gained 1.28 per cent or 51.68 points, to close at 4,079.80 points.The previous benchmark index of the bourse, DGEN, lost 0.03 per cent or 1.08 points, to close at 4,299.66 points.
DS30, the blue-chip index of DSE, gained 0.32 per cent or 4.86 points, to close at 1,505.59 points.
Average daily turnover of the bourse inched down by 1.07 per cent to Tk 579.23 crore from the previous week’s Tk 585.48 crore.
Market operators said trading was volatile last week because of a number of reasons, including the announcement of the national budget for the financial year 2013-14 and the election of the board of directors of the DSE.
Confusion over legalising undisclosed money through stock investment subject to a 10 per cent tax also made the investors worried as the budget did not give details on the issue this year.
‘The measures proposed in the budget seem okay, but they do not meet the market’s needs at the moment,’ said a stockbroker.
He said some institutional investors, especially mutual funds, got benefit from the budgetary intensive, but the retail investors had not much to cheer about.
Another stockbroker said large scale investors went for sell-offs last week and tried to cash in on the optimism of the retail ones.
The Dhaka and the Chittagong stock exchanges in separate reactions have said the budget could have been more capital market-friendly.
Both bourses expressed their concern over the borrowing target from the money market set by the government saying it might create liquidity crisis again.
Of the 292 issues traded last week, 169 advanced, 107 declined and 16 remained unchanged.
All the major sectors posted marginal gains last week, except telecommunications that retraced heavily with a loss of 4.39 per cent following the budget proposal that corporate tax for listed telecom companies would increase by 5 per cent.
Non-bank financial institutions were the highest gainers last week by advancing 0.94 per cent, followed by pharmaceuticals that gained 0.79 per cent. Fuel and power gained 0.34 per cent while banks gained 0.02 per cent.
Unique Hotel topped the week’s turnover chart with shares worth Tk 151.13 million changing hands.
The other turnover leaders were BSCCL, Summit Purbanchol Power Company, United Airways, Meghna Petroleum, Orion Pharma, Active Fine Chemicals, Titas Gas, Olympic Industries and RN Spinning.
-With New Age input
