Dhaka stocks advanced for the second trading session on Tuesday riding on the expectation that the government might revise some budget proposals related with the capital market. The key index of Dhaka Stock Exchange, DSEX, closed at 4,392.94 points, adding 0.57 per cent or 25.04 points. Market operators said that despite the central bank move to increase cash reserve requirement for banks, investors went for buying shares hoping that the government might review some budget proposals which are not favarouble for the market.
Investors’ hope rose as the Bangladesh Securities and Exchange Commission on Monday held a meeting with the National Board of Revenue and suggested that the government should review budget proposals including imposition of capital gain tax.
If the government approves the budget scraping the newly imposed gain tax on individual investors at 3-5 per cent rate that may boost investors’ confidence further, they said.
Besides, some investors might have also gone for bargain hunting on Monday as the share prices had declined significantly after the budget proposals which might be another reason behind the rising market trend, they said.
‘Bangladesh Bank’s latest directive which increased banks’ cash reserve ratio may not affect liquidity supply in the capital market as banks are already having around Tk 1,32,000 crore surplus cash while the increased ratio will only mop up around Tk 3,000 crore from the sector,’ Union Capital managing director Akter H Sannamat told New Age.
Investors are expecting that the government would review its decision regarding the proposed gain tax and tax rebate for the listed companies which might have made investors optimistic, he said.
DS30, the blue-chip index of the bourse, finished flat at 1,614.38 points, increasing 0.23 per cent, or 3.71 points.
The Shariah index of the bourse, DSES, advanced by 0.23 per cent, or 2.35 points, to close at 1,000.75 points.
Turnover of the bourse declined to Tk 280.53 crore on Tuesday compared with Tk 293.05 crore in the previous trading session.
Of the 296 shares and mutual funds changed hands, 183 advanced, 70 declined and 43 remained unchanged.
‘Yesterday’s [Monday] sudden increase in CRR by Bangladesh Bank was unattended by today’s [Tuesday] market,’ IDLC Investments said in its daily market commentary.
Shares of Lafarge Surma Cement traded the most with its Tk 20.52 crore shares changing hands.
BEXIMCO Pharmaceuticals, Grameenphone, Square Pharmaceuticals, Beximco Pharma, United Airways, UCBL, ACI Limited, Bangladesh Submarine Cable Company and Delta Life Insurance were among other turnover leaders.
United Airways gained the most as its share prices increased by 7.07 per cent, while Stylecraft lost the most shedding 5.84 per cent.
-With New Age input
