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Stocks dip for 2nd day as nervy trading continues

Staff Correspondent | Published: 00:00, Jun 24,2019

 
 

Dhaka stocks dropped for the second day on Sunday amid a decline in share prices of two-thirds of the traded scrips and a plunge in turnover as investors were worried about possible steps the government would take to review the proposed taxes on the listed companies’ reserve and stock dividend.
DSEX, the key index of Dhaka Stock Exchange, lost 0.21 per cent, or 11.73 points, to close at 5,395.62 points on Sunday after losing 15.77 points in the previous two sessions.
After a flat start at the beginning, the market began to dip and finished the session in the negative zone as investors continued selling shares as they worried about the review of the taxes, market operators said.
The turnover at the bourse plunged to Tk 338.20 crore on Sunday from Tk 445.67 crore in the previous session.
Market operators said there was a rumour at the market that the National Board of Revenue would not completely remove the provisions in the proposed budget that imposed 15 per cent tax on companies’ retained earnings and reserve, and stock dividends.
Finance minister AHM Mustafa Kamal on June 13 in the proposed national budget for the fiscal year of 2019-20 slapped the taxes on the listed companies.
The proposed budget will be effective from July 1.
Out of the 351 shares and mutual funds traded on Sunday, 221 declined, 88 advanced and 40 remained unchanged.
The DSEX lost 87 points after the budget declaration.
NBR chairman Mosharraf Hossain Bhuiyan on June 17 said that the 15 per cent tax on listed companies’ reserve and retained earnings would be reconsidered.
The statement lessened panic share sales, market operators said.
Investors are now waiting to see what sort of changes the government makes to the tax proposals, they said.
The average share prices of textile sector dropped by 1.26 per cent, that of non-bank financial institutions by 0.57 per cent and that of energy sector by 0.35 per cent.
The average share prices of bank and telecommunication sectors gained 0.22 per cent and 0.17 per cent respectively that saved the market from a significant fall on the day.
DS30, the blue-chip index of DSE, gained 0.12 per cent, or 2.32 points, to close at 1,896.72 points.
DSE Shariah index DSES lost 1.84 per cent, or 1.84 points, to close at 1,231.42 points.
United Power Generation Company led the turnover chart with its shares worth Tk 16.57 crore changing hands.
Eastern Insurance, Global Insurance, Fortune Shoes, Square Pharmaceuticals, JMI Syringe, National Life Insurance, Aman Feed, Monno Ceramics and Central Insurance were the other turnover leaders.
Central Insurance Company gained the most on the day with a 10-per cent increase in its share prices while Popular Life Insurance was the worst loser, shedding 4.65 per cent.

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