Stocks gain for 2nd day amid tax review hopes
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Dhaka stocks gained on Wednesday after a slight gain in the previous day as some investors continued buying shares amid tax review hopes before the passage of the national budget.
DSEX, the key index of Dhaka Stock Exchange, added 0.55 per cent, or 29.73 points, to close at 5,410.70 points on Wednesday after gaining 1.80 points in the previous session.
The market started gaining from the very beginning of the day and climbed further as the time passed as a section of investors continued buying shares before the passage of the finance bill, market operators said.
The budget for the fiscal year of 2019-20 is likely to be passed in parliament on June 30. Market operators said some investors became enthusiastic as they anticipated that the government would review the 15 per cent tax it imposed on reserve and retained earnings in the proposed budget.
Finance minister AHM Mustafa Kamal in the proposed budget that was placed before parliament on June 13 imposed the tax.
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.
National Board of Revenue chairman Mosharraf Hossain Bhuiyan on June 17 also said that the tax would be reconsidered.
EBL Securities in its daily market commentary said, ‘The market started with upward vibe and continued till the end without any halt as opportunistic investors chose to take fresh position for rebalancing their portfolios ahead of budget approval.’
‘Investors’ confidence was restored as the chairman of National Board of Revenue hinted at the possibility of reviewing the proposed tax on retained earnings and reserve of listed companies in the budget for FY 2019-20, which resulted in the DSE index increasing in two straight sessions,’ it said.
Besides, some investors preferred to be on the sidelines to observe the government decision on the tax issue as they were 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, market operators said.
The turnover at the bourse dipped to Tk 431.64 crore on Wednesday from that of Tk 453.38 crore in the previous session.
The average share prices of energy sector advanced by 1.3 per cent, that of general insurance 1.2 per cent, that of telecommunication 1.19 per cent and that of bank 0.8 per cent.
The average share prices of life insurance companies dropped by 1.1 per cent and that of non-bank financial institutions 0.7 per cent.
Out of the 352 shares and mutual funds traded on Wednesday, 173 advanced, 124 declined and 56 remained unchanged.
DS30, the blue-chip index of DSE, gained 0.79 per cent, or 15.06 points, to close at 1,911.55 points. DSE Shariah index DSES increased by 0.90 per cent, or 11.11 points, to close at 1,241.92 points.
United Power Generation Company led the turnover chart with its shares worth Tk 24.10 crore changing hands. National Polymer Industries, JMI Syringe, Square Pharmaceuticals, Fortune Shoes, Monno Ceramic Industries, Runner Automobiles, BBS Cables, Bangas and Sinobanagla Industries were the other turnover leaders.
Bangladesh General Insurance Company gained the most on the day with an 8.84-per cent increase in its unit prices while IPDC Finance was the worst loser, shedding 17.98 per cent.
Source: http://www.newagebd.net
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