Dhaka stocks in the past week snapped a six-week losing streak as a section of investors went on buying shares amid the expectation of corporate tax cut in the national budget.
DSEX, the key index of Dhaka Stock Exchange, gained 0.43 per cent or 22.79 points over the week to finish at 5,366.67 points on Thursday, the last trading session of the week, after losing 500 points in the previous six consecutive weeks.
Although DSEX declined in most of the sessions, it finally witnessed a positive a week amid heavy share buying in two sessions as finance minister AMA Muhith hinted that he would reduce corporate tax of companies in the budget.
Investors hoped that the cut in corporate tax would increase the profitability of listed companies, market operators said.
Muhith on Thursday placed the budget before parliament and proposed to cut corporate tax of only listed and non-listed banks, NBFIs and insurance companies.
Before, last week market was in downward trend for two months mainly due to the poor earnings and dividends disclosures by most of the high-profiled companies including banks.
Moreover, the continuous media reports that the banking sector has been infected with scams, huge amount of default loans and poor regulatory actions that was giving jitters to the investors.
Average share prices of financial sector drive the market upward as bank and non-bank financial institutions sectors advanced by 2 per cent and 0.7 per cent respectively in the past week.
Energy, food and pharmaceuticals also joint with the rally of the financial sectors.
Surge in share prices of some of the large capitalized scrips including Grameenphone, BRAC Bank, United Power Generation Company and Investment Corporation of Bangladesh helped the market rebound on the week.
On the other hand, the DSEX dropped most of the sessions over the week as a section of investors kept share sales to cash out for meeting Eid-centric expenses.
Average share prices of telecommunication, engineering and textile sectors declined by 4.6 per cent, 0.22 per cent and 0.14 respectively.
Out of the 342 companies and mutual funds traded in the past week, 158 declined, 154 advanced, and 30 remained unchanged.
‘The investors’ sentiment regarding the market remained optimistic as they opted for position taking on sector specific stocks considering favorable price level to re-invest their portfolio,’ said EBL Securities in its weekly market commentary.
Average daily turnover on the bourse, dropped to Tk 424.13 crore compared with that of Tk 453.03 crore in the previous week. Textile and engineering sectors led the turnover.
DS30, the blue chip index of the DSE, also added 0.16 per cent, or 3.08 points, to close at 1,978.08 points over the week.
Shariah index DSES, however, slipped 0.02 per cent, or 0.27 points, to close at 1,238.04 points.
Alif Industries led the turnover chart with its shares worth Tk 115.72 crore changing hands.
Bangladesh Export Import Company, Monno Ceramics, Intraco Refueling Station, Square Pharmaceuticals, Khula Power Company, Berger Paints Bangladesh, Grameenphone, Legacy Footwear and United Power Generation Company were the other turnover leaders.
BD Autocars gained the most in the week with a 47.36 -per cent increase in its share prices, while MBL 1st Mutual Fund was the worst loser shedding 11.76 per cent.
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