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Dhaka stocks inch up in seesaw trading

Staff Correspondent | Published: 00:12, Jun 26,2019

 
 

Dhaka stocks inched up on Tuesday after a three-day fall as some investors went for buying shares on tax review hope while many others remained cautious as they were uncertain about the government’s position on the issue ahead of passage of the national budget.

DSEX, the key index of Dhaka Stock Exchange, added 0.03 per cent, or 1.80 points, to close at 5,380.96 points on Tuesday after losing 32 points in the previous three sessions.

The market went through a rough day with the index fluctuating throughout the session and finished the session with a marginal gain as investors were divided over the issue of proposed tax on listed companies, market operators said.

Some investors went for buying shares as prime minister’s private industry and investment affairs adviser Salman F Rahman on Monday said that the government was seriously working on the issue of proposed 15 per cent additional tax on retained earnings and reserve of listed companies and the issue might be resolved before passage of the budget for the financial year of 2019-20.

Finance minister AHM Mustafa Kamal in the proposed budget that was placed before parliament on June 13 imposed the tax on retained earnings and reserve of listed companies.

The budget is likely to be passed in parliament on June 30.

National Board of Revenue chairman Mosharraf Hossain Bhuiyan on June 17 also said that the 15 per cent tax on listed companies’ reserve and retained earnings would be reconsidered.

The turnover at the bourse rose to Tk 453.38 crore on Tuesday from Tk 378.13 crore on Monday.

Many investors hesitated to buy shares as they were worried about how the government would resolve the tax issue, market operators said.

Investors are now waiting to see what sort of changes the government ultimately makes in proposed taxes on the listed companies when the budget is passed in parliament, they said.

Out of the 352 shares and mutual funds traded on Tuesday, 161 declined, 131 advanced and 57 remained unchanged.

EBL Securities in its daily market commentary said, ‘DSE witnessed choppy trading throughout the day. Investors have remained watchful ahead of the passing of “Finance Bill» and also amidst the possibility of changes in the regulations in the budget regarding stock market.’

The average share prices of energy, telecommunication and bank advanced by 0.4 per cent, 0.3 per cent and 0.1 per cent respectively.

The average share prices of general insurance, life insurance, textile and non-bank financial institution dropped by 3.0 per cent, 1.3 per cent, 0.3 per cent, and 0.29 per cent respectively.

DS30, the blue-chip index of DSE, gained 0.14 per cent, or 2.66 points, to close at 1,896.49 points.

DSE Shariah index DSES increased by 0.06 per cent, or 0.77 points, to close at 1,230.81 points.

JMI Syringe led the turnover chart with its shares worth Tk 24.10 crore changing hands.

United Power Generation Company, Genex Infosys, Global Insurance, Bangladesh Shipping Corporation, Square Pharmaceuticals, Grameenphone, Runner Automobiles, BBS Cables and BRAC Bank were the other turnover leaders.

Prime Finance First Mutual Fund gained the most on the day with a 9.56-per cent increase in its unit prices while Al-Haj Textile Mills was the worst loser, shedding 9.90 per cent. 

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