Stocks slump on new tax measures, GP woes
Image: Bizbangladesh.net
Dhaka stocks slumped on Sunday as investors resumed share selling amid worries over the new budgetary measures on listed companies and a hike in gas price by the government.
Besides, the Bangladesh Telecommunication Regulatory Commission’s move to reduce bandwidth of Grameenphone, one of the listed companies, over unpaid audit claim also dampened investors’ mood on the day, said market operators.
The DSEX, key index of Dhaka Stock Exchange, fell by 0.88 per cent, or 47.70 points, to close at 5,333.08 points on Sunday.
The index had only inched up by 8.58 points in the previous session on Thursday on bargain hunting following a three-day fall because of the new tax measures on the listed companies and gas price hike.
Despite Thursday’s gains, the DSEX lost 96.94 points in five trading sessions since parliament passed the Financial Bill 2019 with the new tax measures on June 29.
In the bill, the government imposed 10 per cent tax on listed cos’ stock dividend if it exceeds cash dividend.
It also levied 10 per cent tax on the amount of profits transferred to reserve by a listed company if the amount exceeds 70 per cent of the company’s net profits for the year.
Investors, who expected incentives for the capital market in budget, were not impressed with the new tax measures, said market operators.
The gas price hike decision of the government also hurt investors’ sentiment, resulting in sell offs of manufacturing sector shares, particularly textile sector.
The trading on the bourse began in a subdued mood on Sunday with the DSEX inching up in first 10 minutes before sliding steadily and ultimately ending with sharp losses amid sell-offs.
EBL Securities in its daily market update said, ‘The capital bourse of the country witnessed price correction Sunday amid daylong profit booking selling frenzy.’
‘The market opened on a negative note and the downward trend continued till the end of the session without any halt as investors remained watchful ahead of upcoming earnings and corporate declarations from listed corporations,’ it said.
Moreover, BTRC partially blocked the bandwidth capacity of GP that also weighed on investors’ sentiment, it said.
All the sectors, except mutual funds, slumped on the day.
Share prices of GP fell by 2.3 per cent on the day following the BTRC move to slash its bandwidth.
The unit prices of mutual funds continued to rise abnormally on the day with some of the mutual funds rising by 50 per cent in last few days.
Among the major sectors, prices of bank shares fell by 1 per cent, non-bank financial institution by 1.2 per cent, textile 1 per cent, fuel and power 0.7 per cent, IT 1 per cent and cement 1.5 per cent.
Turnover on the bourse also fell on the day to Tk 414.33 crore from Tk 487.53 crore in the previous session.
DS30, the blue-chip index of DSE, slumped by 1.03 per cent, or 19.69 points, to close at 1,890.38 points.
DSE Shariah index DSES shed 0.96 per cent, or 11.93 points, to close at 1,221.46 points.
JMI Syringe led the turnover chart with its shares worth Tk 13 crore changing hands.
Asian Tiger Sandhani Life Growth Fund, Runner Automobiles, National Life Insurance, Rupali Insurance, Eastern Cables, Sino Bangla, Silco Pharmaceuticals, Paramount Textile Ltd and National Polymer were the other turnover leaders.
CAPL BDBL Mutual Fund 01 gained the most on the day with a 10-per cent increase in its unit prices while Global Insurance was the worst loser, shedding 7.64 per cent.
Source: http://www.newagebd.net
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