Dhaka stocks rebounded last week after a two-week fall as budget review hopes helped investors to recover some confidence on the market. DSEX, the key index of Dhaka Stock Exchange, increased by 1.87 per cent, or 81.02 points, in the week to close at 4,409.43 points on Thursday. The daily average turnover of the DSE rose to Tk 287.34 crore from Tk 279.39 crore in the previous week.
Market operators said that Bangladesh Securities and Exchange Commission’s meeting with the National Board of Revenue made investors optimistic.
At the meeting, the commission requested the revenue board to review the budget proposals relating to capital market mainly gain tax.
The government in the proposed finance bill imposed 3-5 per cent gain tax on individual investors and scrapped 10 per cent tax rebate for the listed companies which declare 20 per cent or more dividends for their shareholders.
Investors had remained pessimistic for two weeks after the budget proposals, market operators said.
Investors’ bargain hunting move was another reason behind the positive vibe in the market due to significant decline in share prices in the previous two weeks, they said.
Amid the positive vibe, some investors’ profit-taking move resulted decline in banks and some multinational companies’ shares, they said.
The blue-chip index of the bourse, DS30, finished at 1,616.57 points, adding 0.82 per cent or 13.11 points.
DSES, the Shariah index of the DSE, gained 1.33 per cent, or 13.25 points, to close at 1,006.22 points.
Of the 305 shares and mutual fund traded in the week, 210 advanced, 79 declined and 16 remained unchanged.
‘Substantial profit booking tendency reversed and subsequently turned into a motivation for investment, this week,’ IDLC Investments said in its weekly market commentary.
‘Since the market absorbed a significant downhill in last several sessions, bargain hunters started stepping forward and re-assessed significant upside potentials,’ it said.
Besides, developments in macroeconomic front like 50 basis points increase in CRR and 24 per cent increase in FDI also sustained this week, said IDLC.
‘In a consolidated view, overall market showcased a rhythmic turnaround,’ it also said.
Lafarge Surma Cement led the turnover leaders with its shares worth Tk 125.23 crore changing hands.
Grameenphone, BEXIMCO, Square Pharma, Bangladesh Submarine Cable Company, ACI, United Airways, BSRM Steels, United Commercial Bank and Beximco Pharma were among the other turnover leaders.
AIBL 1st Islamic Mutual Fund gained the most in the week with an 18.03-per cent increase in its share price, while Delta Life Insurance declined the most, shedding 19.40 per cent.
-With New Age input
