Dhaka, Bangladesh (BBN)-Bangladesh’s stocks saw sharp gain on Sunday with improving turnover as investors went for buying spree following the news of withdrawal of capital gain tax in the final budget for the fiscal year 2014-15.
The market started with an upward trend in the morning, which continued till the market closure.
Eventually, DSEX, the prime index of the Dhaka Stock Exchange (DSE) went up by 77.64 points or 1.76 percent to close at 4,487.07 points.
The other two indices also saw sharp rise.
The comprising blue chips, DS30 gained 22.32 points or 1.38 percent to close at 1,638.90.
The DSE Shariah Index (DSES) rose 10.95 points or 1.08 percent to close at 1,017.17 points.
DSE turnover stood at BDT 3.90 billion, registering an increase of 28.85 percent from previous session’s value of BDT 3.03 billion.
“Withdrawal of proposed capital gain tax, continuation of 10 percent tax rebate for listed companies giving 30 per cent or more dividends and double the limit for tax free dividend income in the budget for the fiscal year 2014-15 encouraged the investors to take position,” said an analyst.
“Withdrawal of the proposed capital gain tax has improved investors’ sentiment closing the heightening concern over it for the last few weeks,” commented LankaBangla Securities, in its daily market analysis.
“Government’s decision to withdraw from the capital gain tax which was earlier proposed in the budget definitely played a staggering role leaving a positive mark on the market,” said Zenith Investments.
BRAC EPL, a stock brokerage said, “Market started the week on a positive note following the government’s decision to drop capital gain tax for individual investors”.
Out of 296 issues traded, 236 advanced, 44 declined and 16 remained unchanged on the DSE floor.
The total market capitalization on DSE improved to BDT 2,929.45 billion against BDT 2,894.54 billion in the previous session.
Lafarge Surma Cement was the most traded stocks with shares worth BDT 344.35 million changing hands followed by Beximco, GP, United Airways and Square Pharmaceuticals.
Fine Foods was the day’s highest gainer, posting a rise of 9.92 percent while Delta Active Fine was the day’s worst loser, slumping by 4.09 percent.
The port city bourse, Chittagong Stock Exchange (CSE), also saw steep gain with its Selective Categories Index – CSCX – gained 139.46 points to close at 8,540.83 points.
Losers beat gainers 179 to 35, with 10 issues remaining unchanged at the port city bourse that traded 10.87 million shares and mutual fund units, turnover value of BDT 325.64 million.
BBN/BB/ANS-29June14-4:00pm (BST)
