Home ›› 10 Jun 2023 ›› Stock
The country’s prime bourse, the Dhaka Stock Exchange’s key index, the DSEX, lost 2.71 points or 0.04 per cent and closed the week at 6,352.84 points as investors remained cautious with an eye on the market’s momentum following the announcement of the proposed national budget.
Average turnover decreased by 1.40 per cent to Tk 1,089 crore while the life insurance sector dominated the turnover chart, covering 21.53 per cent of the total.
The blue-chip index, DS30, stood at 2,192.89 points losing 8.44 points. The Shariah-based index, DSES, lost 1.14 points and stood at 1,378.43 points.
The market performed five trading sessions this week. Trading started on a positive note with 0.17 per cent on Sunday. However, it closed in the negative territory on Monday dipping 0.15 per cent and remained negative till Tuesday with a dip of 0.63 per cent.
Although, it turned positive on Wednesday, rising 0.36 per cent. The bourse remained positive till Thursday by rising 0.22 per cent and closing on a positive note.
EBL Securities said in its weekly market review that the key index of the capital bourse ended flat, staying afloat in negative territory as investors preferred to remain cautious and keep an eye on market momentum following the announcement of the national budget.
Though the market began the week with positive momentum as opportunist investors continued to seek out sector-specific lucrative opportunities with quick gain potential, it encountered dominant sell pressure during the middle of the week due to the anxiety among investors regarding the rumoured imposition of a capital gain tax on the secondary market investments.
However, there were some signs of recovery in the week’s last two sessions as a sharp correction in most stocks created a bargain-hunting opportunity for opportunistic investors, EBL Securities said.
BRAC EPL said in its weekly market review that most of the financial sectors registered negative performance this week. General insurance experienced the highest loss of 2.86%, followed by mutual funds (0.44%), NBFI (0.19%), banks (0.12%), and life insurance (12.72%).
Out of the 402 issues traded, 69 advanced, 114 declined, and 208 remained unchanged on the country’s prime bourse for the week.
Trust Islami Life Insurance was the week’s top gainer, soaring 46 per cent while National Tea Company was the week’s worst sufferer with corrections of 16 per cent.
The Dhaka Stock Exchange suffered this year’s sharpest single-day crash on Tuesday, as investors became nervous due to the uncertainty regarding the imposition of capital gain tax on investments in the secondary market.
The DSEX sank 40 points or 0.63 per cent as the index settled at 6,316 against 6,356 in the previous trading session. This decline marks the sharpest drop for the major equity benchmark since November 20 of the previous year when it had fallen by 0.81 per cent.
Despite the market remaining flat until mid-session, sell pressure continued to mount across the trading floor during the second half of the trading session, prompting panic-stricken investors to liquidate their holdings and remain on the sidelines from the current volatility in the market, according to market insiders.
Muhammad Ali, a stock market expert and managing partner of Ali Zahir Ashraf & Company said, “Tax benefits for individual investors are still in place. As per an SRO issued on June 30, 2015, individual investors are exempted from tax on capital gains. Another fresh SRO needs to be issued to cancel the existing facility. But nothing has happened yet regarding the situation.”
The port city’s bourse, Chittagong Stock Exchange, showed mixed trends this week. Its prime index, CSCX, rose by 0.013 per cent to 11220 points. Out of the 307 issues traded, 69 advanced, 94 declined, and 144 remained unchanged on the bourse for the week.
