Dhaka stocks witnessed increase in share prices in the past week for a second consecutive week following rebounding investors’ sentiment as the National Board of Revenue halved the percentage of capital gains tax, market operators said.
They added that with continuous efforts of the Bangladesh Securities and Exchange Commission and the Dhaka Stock Exchange to improve the market condition, investors’ were feeling hopeful about the market returning to a positive vibe.
DSEX, the key index of the Dhaka Stock Exchange, gained 116.93 points, or 2.25 per cent, in the past week to end at 5,316.33 points.
The DSEX gained 201.73 points in the past two weeks after losing about 620 points in the previous five weeks.
The Dhaka bourse operated in five sessions in the past week, among which it gained in two sessions and lost in the other three.
Earlier on October 27, the BSEC formed an inquiry committee to investigate reasons behind unusual market fall, which also helped to increase investors’ confidence.
Furthermore, finance adviser Salehuddin Ahmed on October 30 promised immediate steps for solutions to the existing crises of the country’s stock market and promised liquidity support which bolstered overall market sentiment.
Meanwhile, the government on Thursday decided to provide sovereign guarantee for a Tk 3,000 crore loan from the Bangladesh Bank to the Investment Corporation of Bangladesh for capital market development.
However, stockbrokers said that higher bank interest rates made it more appealing to invest in fixed-income options instead of the stock market.
The daily average turnover on the DSE increased in the past week to reach Tk 605.81 crore compared with that of Tk 416.65 crore in the previous week.
Of the 394 issues traded in the past week, 254 increased, 111 decreased and 29 stayed the same.
Investors were mostly active in pharmaceutical scrips, followed by bank and textile shares.
EBL Securities in its weekly market commentary said, ‘Investor optimism was notably heightened, driven by positive regulatory policy discussions namely early settlement of shares, liquidity support through ICB and capital gains tax cuts, which contributed to sustain market momentum.’
‘Meanwhile, investors were seen actively switching positions, either booking profits or repositioning in stocks with favourable earnings declarations, reflecting a selective yet optimistic approach in the current market environment,’ it added
The DS30 index increased by 39.49 points, or 2.05 per cent, to finish at 1,965.54 points.
The DSE Shariah index gained 43.01 points, or 3.76 per cent, to close at 1,187.91 points in the past week.
Orion Pharma topped the average weekly turnover chart with shares worth Tk 17.66 crore changing hands per session.
Bangladesh Shipping Corporation, Islami Bank Bangladesh, Far East Knitting & Dyeing Industries, Midland Bank, Agni Systems, Beximco Pharmaceuticals, Orion Infusion, BRAC Bank, and Taufika Foods and Lovello Ice-cream were the other turnover leaders.
