Bangladesh: Dhaka stocks gain for 2nd week on budget review

Dhaka, July 6, 2014 (New Age): Dhaka stocks advanced last week, two week in a row, after the government had reviewed capital market-related budget proposals. The key index of Dhaka Stock Exchange, DSEX, gained 0.61 per cent, or 26.78 points, in the week to close at 4,436.21 points on Thursday, last trading day of the week. The market remained closed on Tuesday due to half-yearly bank closing. The DSEX advanced sharply by 1.76 per cent or 77.64 points on Sunday after the government on Saturday had approved the finance bill 2014, scrapping the proposal of imposing 3-5 per cent gain tax on individual investors. The finance bill for the next fiscal year also scrapped some other capital market-related proposals that had dejected investors. The approved finance bill also restored 10 per cent tax rebate for the listed companies, increasing the dividend payment limit by 10 per cent to 30 per cent. Except Sunday, the market fell all other three trading sessions of the week due to the half yearly closing share sell-offs by the institutional investors to realise some profit, operators said. On the other hand, profit taking sell-offs by the retail investors and reduced participation by the institutional investors after the half yearly closing on June 30 was also observed, they said. The Finance Bill 2014 and the national budget for FY 2014-15 were duly passed last week, leaving a bundle of opportunities for the capital market and especially for investors, IDLC Investments said in its weekly market commentary. ‘Especially, removal of proposed capital gain tax and prolonging of 10 per cent tax exemption on increased (from 20 per cent to 30 per cent) dividend payment by companies influenced investors much favourably,’ it said. ‘Going ahead, the later part of the week continuously faced hit from profit booking and portfolio re-balancing due to cashing out mania,’ said IDLC. DS30, the blue-chip index of the bourse, finished at 1,621.89 points, adding 0.33 per cent or 5.29 points. The Shariah index of DSE, DSES, however, fell by 0.33 per cent, or 3.31 points, to finish at 1,002.92 points. Of the 305 shares and mutual funds traded, 137 advanced, 140 declined and 28 remained unchanged. Daily average turnover of the bourse increased to Tk 321.76 crore from Tk 287.34 crore in the previous week. BEXIMCO led the turnover leaders in the week with its shares worth Tk 99.93 crore changing hands. Grameenphone, Lafarge Surma Cement, Appollo Ispat Complex, United Airways (BD), Square Pharma, Bangladesh Submarine Cable Company, Meghna Petroleum, BSRM Steels and Padma Oil were among the other turnover leaders. Fine Foods topped the gainers’ list with a 21.99-per cent increase in its share price, while Meghna Life Insurance was the worst loser with a 13.67-per cent decline in its share price.