Dhaka, Bangladesh (BBN)– Bangladesh’s stocks return to the green last week that ended on Thursday, breaking a six-week losing streak, amid budgetary expectations.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 22.79 points to settle the week at 5,366 points.
Dealers said the investors went for buying shares in anticipation of corporate tax cut of listed banks and financial institutions for the upcoming fiscal year 2018-19.
Finally, the Finance Minister AMA Muhith has proposed to cut corporate tax rate by 2.5 percent to 37.5 percent for the listed banks and financial institutions for the fiscal year (FY) 2018-19.
However, corporate tax rates for other publicly traded companies remain unchanged.
“The investors responded positively to the news of possible corporate tax cut on listed banks, non-bank financial institutions, especially third and fourth session of the week,” said an analyst at a leading brokerage firm.
The week featured five trading sessions as usual. Of them, three sessions ended lower while two closed higher.
The DS30 index, comprising blue chips, also advanced 3.08 to end at 1,978. However, the DSES (Shariah) index saw a fractional loss of 0.27 points to settle at 1,238 points.
The Chittagong Stock Exchange (CSE) also finished marginally higher with the CSE All Share Price Index – CASPI –advancing 58 points to settle at 16,549 points.
The Selective Categories Index – CSCX – also gained 35 points to close at 10,012 points.
According to International Leasing Securities, the market back to the green as investors anticipated an investment-friendly national budget.
The stockbroker noted that the investors mainly took position on bank and financial institutions’ sectors stock riding on the news that government may cut corporate tax rate in the nation budget.
Total turnover on the DSE also came down to BDT 21.20 billion last week, against BDT 22.65 billion in the week before.
The daily turnover averaged BDT 4.24 billion, which was 6.38 percent lower than the previous week’s average of BDT 4.53 billion.
The market capitalisation of the DSE also fell slightly by 0.08 percent as it was BDT 3,899 billion on opening day of the week while it came down to BDT 3,796 billion on Thursday.
Of the issues traded, 158 closed lower, 154 advanced and 30 issues remained unchanged on the DSE floor.
Alif Industries was the week’s most traded stock with 10.91 million shares worth BDT 1.15 billion changing hands, followed by Beximco, Monno Ceramic Industries, Intraco Refueling Station and Square Pharma.
BD Autocars was the week’s best performer, posting a gain of 47.36 percent while the MBL 1stMutual Fund was the worst loser, losing 11.76 percent.