Bangladesh: Dhaka stocks end positive

Dhaka, June 27 (New Age): Dhaka stocks ended positive on Thursday, last trading session of the week, but turnover at the bourse dropped as some investors remained cautious ahead of the budget approval.
The benchmark general index of the Dhaka Stock Exchange, DSEX, finished at 4,409.42 points, adding 0.13 per cent or 5.77 points.
Turnover of the bourse declined to Tk 302.78 crore on the day from Tk 337.72 crore in the previous trading session.
Market operators said investors were little-bit cautious ahead of the final approval to the proposed budget for the fiscal year 2014-2015.
The government in the proposed finance bill imposed 3-5 per cent gain tax on individual investors and scrapped 10 per cent tax rebate for the listed companies that had kept investors pessimistic for two weeks after the budget proposals.
Investors became hopeful after the Bangladesh Securities and Exchange Commission and the bourses had requested the finance minister, AMA Muhith, to scrap capital market unfriendly proposals from the budget, they said.
Operators also said that investors were hoping that the proposals would be reviewed by the government.
DS30, the blue-chip index of the DSE, however, closed negative at 1,616.57 points, shedding 0.16 per cent or 2.74 points.
The Shariah index of the bourse, DSES, slipped by 0.10 per cent, or 1.01 points, to close at 1,006.22 points.
Of the 294 shares and mutual funds traded on the day, 152 advanced, 104 declined and 38 remained unchanged.
‘FY 2013-14 is close to its end and the bourse observed June-impact, lately,’ IDLC Investors said in its daily market commentary.
Most of the individual investors started positioning on the hope of getting tax rebate on their income, it said.
‘Accordingly, they preferred selective lucrative scrips, fundamentally as their safe investment,’ it said.
‘Meanwhile, budgetary hopes still prevailed,’ said IDLC.
But, this rebate seeking money flow was out-weighted by the inactivity of large investors, it also said.
Bangladesh Export Import Company traded the most with its shares worth Tk 24.08 crore changing hands, while share prices of the company advanced by 7.90 per cent on the day.