Stocks rise for 3rd day on VAT rate cut reports

Staff Correspondent | Published: 23:13, May 24,2017

 
 

Dhaka stocks advanced on Wednesday for the third day as investors were optimistic at the hints of value-added-tax rate reduction and interest rate cut on national saving tools.
The key index of Dhaka Stock Exchange, DSEX, increased 0.33 per cent or 17.86 points to close at 5,394.81 points after rising 31 points in the previous two sessions.
In line with the previous two sessions, the market was vibrant from the very beginning of the session, rising 27 points within 40 minutes of the day and remained in the positive trajectory without losing that momentum for the whole session, ultimately closing the day with 17.86 points up.
Stocks rose on the day when the news about the VAT rate reduction hint from both finance and commerce ministers motivated the investors to go to the capital market, stockbrokers said.
After finance minister AMA Muhith gave VAT reduction indication, commerce minister Tofail Ahmed on Tuesday hinted that the proposed 15 per cent VAT rate could be reduced to 12 per cent in the coming fiscal budget.
In addition, recent declaration on yield cut of national savings instruments fetched the attraction of investors, said EBL Securities in its daily market commentary.
As a result, all the large capitalised sectors rose while the surge in average share prices of non-bank financial institutions and banks shares by 0.71 per cent and 0.48 per cent respectively contributed most in keeping the market vivacious on the day, stockbrokers said.
Share prices of 13 banks out of traded 29 banks advanced while 7 declined and the rest 9 remained unchanged.
Among the large capitalised scrips, Investment Corporation of Bangladesh, British American Tobacco and Beximco Pharmaceuticals helped the market to rise on Tuesday.
Turnover on the bourse, however, declined to Tk 544.44 crore compared with that of Tk 612.78 crore in the previous trading session.
Of the 321 companies and mutual funds traded, 143 declined, 129 advanced and 52 remained unchanged.
The blue-chip index of the bourse, DS30, added 0.58 per cent or 11.71 points, to close at 2,009.25 points on Wednesday.
DSES, Shariah index of DSE, finished at 1,263.63 points, increasing 0.40 per cent or 5.15 points.
IFAD Autos led the turnover chart on the day with its shares worth Tk 26.25 crore changing hands.
Baraka Power, Bangladesh Export Import Company, Paramount Textile, Agni Systems, MJL Bangladesh, BD Online Company, United Power Generation, Bangladesh Shipping Corporation and LankaBangla Finance were other turnover leaders.
The Peninsula Chittagong gained the most with a 9.66 per cent increase in its share prices, while Republic Insurance Company was the worst loser, shedding 11.00 per cent. 

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