Stocks plunge on NBR chief’s comment

Dhaka stocks plunged on Wednesday after a two-day gain as panic-stricken investors went for selling shares heavily following media reports that National Board of Revenue asked the stock exchanges to ensure that investors must possess taxpayer’s identification number.
DSEX, the key index of Dhaka Stock Exchange, lost 1.26 per cent, or 69.97 points, to close at 5,452 points on Wednesday after gaining 30 points in the previous two sessions.
The market began to fall from the very beginning of the day and descended more firmly to close the session dip into the negative trajectory as investors went for panic selling, market operators said.
They said that investors, especially the general ones, became panicky as the media reported that NBR chairman Mosharraf Hossain Bhuiyan on Tuesday urged the bourses and the insurers to ensure that all of their clients must possess TINs.
The NBR chief made the call at a pre-budget meeting with DSE, Chittagong Stock Exchange, Bangladesh Leasing and Finance Companies Association, Bangladesh Insurance Association, and Bangladesh Merchant Bankers Association.
The meeting was held at NBR conference room in Dhaka.
DSE managing director KAM Majedur Rahman, however, told New Age on Wednesday that the NBR chief’s comment was misinterpreted.
The NBR chief had said that the revenue board would not impose additional taxes rather it would extend the tax net to achieve the government revenue collection target, Majedur said.
He said Mosharraf had said that there were total 40 lakh e-TINs of investors and the bourses but returns submission from the sector was very poor that should be monitored.
Before Wednesday’s fall, the market had gained in two days following prime minister Sheikh Hasina’s comment that her government would reduce banks’ interest rate to single digit, market operators said.
They said that the stock market was very much sensitive to any kind of information and if information came from the government policymakers, the market showed immediate reaction.
The panic selling sent the index to pre-election position as it lost almost 500 points in last three months that eroded market capitalisation by Tk 11, 643 crore. The national election was held on December 30 last year.
The average share prices of all the sectors plunged on Wednesday.
The share prices of energy, telecommunication, bank and non-bank financial institution decreased by 3.15 per cent, 2.48 per cent, 1.63 per cent and 1.57 per cent respectively.
Grameenphone dropped by 2.5 per cent on Wednesday as the media reported that the government was likely to claim around Tk 12,086 crore in dues from GP.
A plunge in the share prices of Grameenphone and United Power Generation Company jointly resulted in a 42-point fall in DSEX.
British American Tobacco, BRAC Bank, Berger Paint Bangladesh and Renata also plunged.
Quasem Industries informed that due to the horrific fire incident on March 28, 2019 at its head office at FR Tower in Dhaka, they were unable to conduct business transactions and regular activities of the company.
EBL Securities in its daily market commentary said, ‘Shaky investors were not confident enough to inject fresh fund in the market and chose to liquidate their stocks to book some profits as several earnings declarations did not meet their expectations.’
The turnover on the bourse increased to Tk 451.36 crore on Wednesday from that of Tk 412.52 crore in the previous trading session.
Out of the 345 issues traded on the day, 264 declined, 54 advanced and 28 remained unchanged.
DSE blue-chip index DS30 slumped by 1.49 per cent, or 29.66 points, to close at 1,947.86 points.
Shariah index DSES dropped by 0.92 per cent, or 11.87 points, to finish at 1,269.28 points. United Power Generation Company led the chart of turnover leaders with its shares worth Tk 54.77 crore changing hands.
Source: http://www.newagebd.net

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