Dhaka stocks rally on NBR move on undisclosed money

Dhaka stocks gained on Wednesday with a higher turnover as the investors went for a buying binge following the National Board of Revenue's announcement that the investors must keep the undisclosed money invested in stocks till June 2013 to avail the opportunity of legalising it by paying 10 per cent tax, market operators said.

The benchmark general index of Dhaka Stock Exchange, or DGEN, on Wednesday gained 78.07 points, or 1.26 per cent, to close the day at 6,243.33 points. The index had gained 40.81 points on Tuesday.

Turnover of the bourse on Wednesday soared to Tk 1,158.63 crore from Tk 875.60 crore in the previous day.

'Undisclosed money which will be invested in the share market cannot be withdrawn before June 2013. If any one withdraws the capital, he or she will lose the opportunity of legalising the money by paying 10 per cent tax,' an NBR official told reporters on Tuesday.

A DSE source said although the market saw a thin turnout of investors on the first day of the 48-hour general strike the main opposition Bangladesh Nationalist Party and its allies are enforcing, the investors placed their sales or buy orders over phone.

Market operators said the investors became optimistic after the NBR's announcement as they thought that the provision would ensure long-term investment in the stock market and also address the liquidity crisis of the market in a better way.

'Undisclosed money which will be invested in the share market cannot be withdrawn before June 2013. If any one withdraws the capital, he or she will lose the opportunity of legalising the money by paying 10 per cent tax,' an NBR official told reporters on Tuesday.

The general index of DSE shed 33.06 points on Monday after gaining 223 points in the previous five trading days as the investors went for a buying binge following the government's decision of allowing investment of undisclosed money in the capital market.

Salahuddin Ahmed Khan, a professor of finance at Dhaka University, said, 'Tuesday's announcement made by the NBR on the investment of undisclosed money in stocks would be helpful for the market as it will reduce volatility.'

'But such scopes in the previous occasions did not bring much funds to the market,' he said.

Of the 260 issues traded on Wednesday, 205 advanced, 51 declined, and four remained unchanged.

Beximco topped the turnover leaders with Tk 53.44 crore. The rest of the top 10 turnover leaders were Uttara Bank, One Bank, MI Cements, IFIC Bank, National Bank, United Commercial Bank, City Bank, AB Bank, and United Airways.

Source : New Age

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