The news of record inflation and huge fines among market manipulators further triggered the prevailing investor pessimism, according to market operators.

Following the previous week's flat ending, the prime index of the Dhaka Stock Exchange (DSE), went down by 43 points or 0.82 per cent to 5,145 at 11:00 am when the report was filed.

The DS30 index, a group of 30 prominent companies, lost 16 points to 1,871, while the DSES index, which represents Shariah-based companies, shed 9 points to 1,155.

Turnover, another important indicator of the market, remained low and amounted to BDT 713 million till then.

Of the issues traded till then, 270 declined, 44 advanced, and 61 issues remained unchanged on the DSE trading floor till then.

Bangladesh Shipping Corporation was the most traded stock till then with shares worth BDT 42 million changing hands.

On the other hand, the Chittagong Stock Exchange saw a downward trend till then with its All Shares Price Index (CASPI)—losing 37 points to stand at 14,543, while the Selective Categories Index – CSCX fell 23 points to reach 8,848 till then.

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Last week, the National Board of Revenue (NBR) set a 15 per cent tax rate on annual capital gains exceeding BDT 5.0 million from the buying and selling of shares in listed companies, regardless of the holding period.

As a result, the overall tax burden on taxpayers with capital gains exceeding BDT 5.0 million will drop to 20.25 per cent from as high as 40.5 per cent earlier.

News of the capital gains tax cut sparked a significant surge in investor sentiment, driving a strong upward movement across key indices, according to market analysts.

Of the five trading days this week, the market ended lower three days while two other sessions witnessed significant gains after the news of capital gains tax cut.

Riding on the substantial price surge of large-cap stocks, the benchmark DSEX index of the Dhaka Stock Exchange soared almost 117 points or 2.25 per cent to settle the week at 5,316.

The DSEX added 202 points in the past two consecutive weeks after losing 616 points in the previous five weeks.

Meanwhile, a state-run ICB has secured a state guarantee for a BDT 30 billion loan aimed at boosting its financial base and investments in the capital market.

Price hikes of selective large-cap blue-chip stocks, such as Islami Bank, Beximco Pharma, Square Pharma, Beacon Pharma, Orion Pharma, Walton and Grameenphone, largely supported the market recovery. They jointly contributed 66 points to the weekly gains of the index.

Subsequently, the DS30 index, which represents a group of 30 prominent companies, rose 39 points to 1,965 while the DSES index, which represents Shariah-based companies, gained 43 points to 1,188.

Last week, BDT 65 billion was added to the market cap, reaching BDT 6,718 billion at the end of the week.

Turnover, a crucial indicator of the market, rose to BDT 30.29 billion this week, as against BDT 20.83 billion in the week before.

The average daily turnover reached BDT 6.06 billion, up 45 per cent from the previous week's average of BDT 4.16 billion.

Investors were mostly active in the pharma sector, which accounted for 19.5 per cent of the week's total turnover, followed by banking (15.5 per cent) and textile (8.9 per cent).

Most of the traded stocks saw price appreciation, as out of 394 issues traded, 254 closed higher, 111 lower and 29 remained unchanged.

Most of the major sectors posted gains. Fuel & Power booked the highest gain of 5.02 per cent, followed by pharmaceuticals (3.32 per cent), engineering (2.8 per cent), non-bank financial institutions (2.56 per cent), and telecoms (0.65 per cent).

However, the Chittagong Stock Exchange (CSE) also ended higher, with the CSE All Share Price Index (CASPI) soaring 409 points to settle at 14,851 and its Selective Categories Index (CSCX) rising 253 points to 9,032.

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Satisfactory earnings reports as well as regulatory moves to restore stability in the market contributed to the index's recovery, market operators said.

Besides, higher-than-expected earnings and dividend declarations from some companies, along with a move to provide liquidity support through the ICB, helped stimulate investor sentiment.

As a result, the last three sessions of the week closed higher, recovering all the losses from the first two days of last week.

Substantial price surge of large-cap stocks, including blue chips, helped the benchmark index of the Dhaka Stock Exchange (DSE), surged almost 85 points or 1.66 per cent to settle the week at 5,199, after losing 616 points in the past five straight weeks.

Last week, BDT 85 billion was added to the market cap, which shed BDT 365 billion in the past five consecutive weeks. The market cap now stands at BDT 6,653 billion.

Seven large-cap stocks -- Brac Bank, Walton, British American Tobacco, Robi, Bangladesh Shipping Corporation, LankaBangla Finance and City Bank -- together accounted for 60 points of the index's rise during the week, according to EBL Securities.

BRAC Bank achieved an impressive 70 per cent year-on-year growth in profit, reaching BDT 4.2 billion for July-September quarter this year, while profits for the nine-month period totalled BDT 10.1 billion.

Following the news, BRAC Bank's stock price jumped 9.10 per cent, contributing to a 15.7-point rise of the key index during the week.

Walton Hi-Tech Industries accounted for a 13.6-point rise of the weekly index, as the company posted a remarkable 73 per cent year-on-year growth in profit in FY'24, overcoming high inflation and macro-economic challenges.

Subsequently, the blue-chip DS30 index, a group of 30 prominent companies, jumped 47 points to close at 1,926. However, the DSES index, which represents Shariah-based companies, saw a fractional loss of 0.89 points to 1,145.

Turnover, a crucial indicator of the market, rose to BDT 28.83 billion this week, as against BDT 16.93 billion in the week before.

The average daily turnover reached BDT 4.16 billion, up 23 per cent from the previous week's average of BDT 3.38 billion.

Investors were mostly active in the banking sector, which accounted for 19 per cent of the week's total turnover, followed by the pharma sector (16.6 per cent) and food (10.8 per cent).

Most of the traded stocks saw price appreciation, as out of 395 issues traded, 279 advanced, 101 declined and 15 remained unchanged.

Most of the major sectors posted gains with mutual funds seeing the highest gain of 10 per cent, followed by engineering, food, power, and pharmaceuticals.

Lovello Ice-cream was the most-traded stock with shares worth Tk 635 million changing hands, closely followed by Brac Bank, Islami Bank, Fareast Knitting & Dyeing and IBN Sina Pharma.

On the other hand, the Chittagong Stock Exchange (CSE) also rebounded, with the CSE All Share Price Index (CASPI) recovering 140 points to settle at 14,442 and its Selective Categories Index (CSCX) gaining 74 points to 8,779.

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The market plunge came a day after the Bangladesh Securities and Exchange Commission imposed a record BDT 4.28 billion fine to nine investors for manipulating the share price of Beximco.

Following the news, the market saw a steep fall from the beginning of the session as investors, particularly the retail ones, went for panic sales, plunging below the 5,500-mark instantly at the opening.

Finally, DSEX, the core index of the Dhaka Stock Exchange (DSE), tumbled more than 132 points or 2.37 per cent to settle at 5,454.

DSEX shed over 204 points in the past three straight sessions.

Turnover, a crucial indicator of the market, however, rose to BDT 10.18 billion, which was 24 per cent higher than the previous day’s tally of BDT 8.23 billion led by sell pressure.

The investors are in a very tough situation as they are witnessing continuous erosion of their money, according to the market operators.

Of the 398 issues traded, 347 declined, 29 advanced and 22 remained unchanged.

Grameenphone was the most-traded stock with shares worth Tk 208 million changing hands, followed by Linde BD, Brac Bank, Sonali Aansh Industries, and Islami Bank.

Desh Garment was the top gainer with a 9.95 per cent gain while Fu-Wang Food was the worst loser, losing 9.92 per cent.

On the other hand, the Chittagong Stock Exchange (CSE) also tumbled with the CSE All Share Price Index (CASPI) shedding 306 points to settle at 15,291 and its Selective Categories Index (CSCX) losing 187 points to close at 9,284.

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Investors are optimistic about the return of good governance in the market as the massive reforms underway in the capital market and the securities regulator is going to form a taskforce for necessary reforms, according to market operators.

Following the previous day’s sharp decline due to downgrading 28 companies, the prime index of the Dhaka Stock Exchange (DSE), went up by 54 points or 0.96 percent to 5,693 within the first hour of trading at 11:00am, when the report was filed.

After one-day, the DSE placed Energypac Power to “B” category from the existing “Z” category with effect from today as the company has reported disbursement of 5.0 per cent cash dividend for the year ended June 30, 2023.

The blue-chip DS30 index, a group of 30 prominent companies, also gained 11 points to 2,076 and the DSES index, which represents Shariah-based companies, jumped 17 points to 1,279 till then.

Turnover, another important indicator of the market, stood at BDT 1.63 billion till then.

Of the issues traded till then, 228 advanced, 97 declined, and 40 issues remained unchanged on the DSE trading floor till then.

Islami Bank Bangladesh was the most traded stock till then with shares worth BDT 162 million changing hands.

On the other hand, the Chittagong Stock Exchange also saw a positive trend till then with its All Shares Price Index (CASPI)—gaining 23 points to stand at 15816 while the Selective Categories Index – CSCX gained 20 points to reach 9,591 till then.

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Islami Bank, Brac Bank and Social Islami Bank topped gainer and turnover lists till then.

Following the previous two days' rise, the prime index of the Dhaka Stock Exchange (DSE), went up by 58 points or 0.99 per cent to 5,835 within the first hour of trading at 11:00 am, when the report was filed.

The blue-chip DS30 index, a group of 30 prominent companies, also gained 19 points to 2,128 and the DSES index, which represents Shariah-based companies, rose 21 points to 1,309 till then.

Turnover, another important indicator of the market, stood at BDT 2.08 billion till then.

Of the issues traded till then, 144 advanced, 173 declined, and 63 issues remained unchanged on the DSE trading floor till then.

Brac Bank was the most traded stock till then with shares worth BDT 276 million changing hands, closely followed by Islami Bank, GP, SIBL and IBN Sina.

On the other hand, the Chittagong Stock Exchange also saw a positive trend till then with its All Shares Price Index (CASPI)—gaining 31 points to stand at 16,207 while the Selective Categories Index – CSCX gained 23 points to reach 9,794 till then.

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The prime index of the Dhaka Stock Exchange (DSE) increased 25.41 points to settle at 5,760.39.

The blue-chip index DS30, a group of 30 prominent companies, saw a 2.16-point increase to 2096.97, while the DSES Index, which represents Shariah-based companies, saw a 10.34-point increase to 1,273.82 till the end.

The market began the trading session with bargain hunters showing interest on sector-specific scrips, particularly bank sector scrips, pulling up the benchmark index to an intraday high of 5793.85 points.

However, cautious investors preferred to realise their gains owing to subdued confidence, causing the benchmark index to come down later in the trading session, according to EBL Securities.

Turnover, a crucial indicator of the market, stood at BDT 6.74 billion, down 20 per cent from the previous trading day.

The majority of the stocks saw a price decrease, as out of the 398 issues traded, 112 closed higher, 237 ended lower, and 49 remained unchanged on the DSE trading floor.

BRAC Bank was the most traded stock, with shares worth BDT 441.54 million changing hands, followed by Linde Bangladesh, Sonali Aansh Industries, Grameenphone and Islami Bank.

On the other hand, the Chittagong Stock Exchange (CSE) ended flat with its All Share Price Index (CASPI) losing 2.07 points to settle at 16187 and the Selective Categories Index (CSCX) gaining 10.9 points to settle at 9774.

The port city bourse traded 4.36 million shares and mutual fund units with a turnover volume of BDT 111.78 million.

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The region was led by Japan’s Nikkei 225, which gained over 2%, powered by utilities and healthcare stocks. The broad-based Topix was up 1.3%, reports CNBC.

China’s loan prime rates were held at 3.35% for the one-year LPR and 3.85% for the five-year LPR, in line with expectations from a Reuters poll of economists.

The one-year LPR acts as the benchmark for most corporate loans, and the five-year LPR serves as a reference rate for mortgages.

Minutes from the Reserve Bank of Australia’s August meeting were released on Tuesday. At the meeting, the bank kept its benchmark interest rate at 4.35%, but noted that inflation remained “above target” and was “proving persistent.”

The central bank said in its release that the board members had considered the case for raising the interest rate, but decided to leave it unchanged as the flow of data since the previous meeting “had not been sufficient to warrant a change in the stance of monetary policy. “

However, the RBA warned that it was “unlikely” that rates would be reduced in the short term, adding that “it was not possible to either rule in or rule out future changes in the cash rate target.”

South Korea’s Kospi was 0.87% higher, and the small-cap Kosdaq rose 1%, the CNBC report added.

The country’s consumer sentiment in August retreated from a two year high of 103.6, coming in at 100.8, with South Korean media outlet Yonhap reporting that this was “due to U.S. recession woes and the subsequent stock market rout.” A figure above 100 indicates that optimists outnumber pessimists.

Australia’s S&P/ASX 200 climbed 0.28% after the RBA release.

However, Hong Kong’s Hang Seng index was down 0.42%, while the mainland Chinese CSI300 was 0.42% lower.

Shares of real estate firm Kaisa dropped 1.9% to 10.15 Hong Kong cents after jumping as much as 14% as the company announced a debt restructuring agreement, consisting of an issue of $5 billion in senior notes and $4.8 billion in mandatory convertible bonds.

In the U.S., all three major indexes advanced, with the S&P 500 and Nasdaq notching their eighth straight winning day.

The Dow Jones Industrial Average added 0.58%, while the S&P 500 rose 0.97%. The tech-heavy Nasdaq Composite jumped 1.39%.

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Dhaka, Bangladesh (BBN) - Asia-Pacific markets largely rose on Thursday after Japan’s GDP growth beat expectations, while traders also digested China retail sales, industrial output and urban unemployment data for July.

China’s retail sales grew 2.7% year on year, beating expectations for a 2.6% growth from economists polled by Reuters. Industrial output on the other hand, grew 5.1% compared to forecasts of 5.2%. The urban unemployment rate climbed slightly to 5.2% from 5% in June, reports CNBC.

Japan’s second-quarter gross domestic product beat market expectations on a quarter-on-quarter basis, climbing 0.8% compared to forecasts of a 0.5% rise from economists polled by Reuters.

This was also a reversal from the revised 0.6% fall seen in the first quarter.

However, on a year-on-year basis, the country’s GDP fell for a second straight quarter, down 0.8% and extending from the first quarter’s contraction of 0.9%.

Japan’s Nikkei 225 as well as the broader Topix rose over 1%.

Australia’s S&P/ASX 200 rose 0.3%, after its unemployment rate for July ticked up 0.1 percentage point to 4.2%. The country’s participation rate also climbed to 67.1%, beating the 66.9% expected by economists polled by Reuters.

Hong Kong’s Hang Seng index rose 0.51%, while mainland China’s CSI 300 gained 1.15%.

South Korea’s and India’s markets are closed for a public holiday.

Wall Street stocks rose overnight after U.S. inflation data met market expectations.

U.S. consumer prices increased 2.9% year over year, down from 3% in June and the lowest reading since March 2021, the Bureau of Labor Statistics said on Wednesday. Month-over-month, prices ticked up 0.2%.

Economists polled by Dow Jones expected a 0.2% increase from the prior month and a 3% gain year-over-year.

The Dow Jones Industrial Average gained 0.61%. The S&P 500 rose 0.38% and marked its fifth straight winning day, while the Nasdaq Composite reversed earlier losses to close 0.03% higher.

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Dhaka Stock Exchange (DSE)’s turnover, a crucial indicator of the market, increased to BDT 20.10 billion on the country's premier bourse which was BDT16.06 billion at the previous session of the week.

DSEX, the prime index of the DSE, went up by 91.09 points or 1.54 per cent to settle at 6,015.91. The DSE 30 Index, comprising blue chips, and the DSE Shariah Index (DSES) also gained 51.62 points to finish at 2,184.36 and 10.36 points closing at 1,285.27.

Out of 400 issues traded, 173 closed green, 207 in the red and 20 remained unchanged on the DSE trading floor.

GP topped the turnover chart, followed by BATBC, BRACBANK, ROBI and City Bank.

ABB1STMF was the day's best performer, posting a gain of 10 per cent while ICB3RDNRB was the worst loser, losing 5.26 per cent.

On the other hand, the Chittagong Stock Exchange (CSE) also ended higher with the CSE All Share Price Index - CASPI -advancing 482.69 points to settle at 17,282.46 and the Selective Categories Index - CSCX gaining 286.69 points to close at 10,418.71.

Of the issues traded, 194 advanced, 86 declined and 15 remained unchanged on the CSE.

The port city's bourse traded 13.2 million shares and mutual fund units with a turnover value of BDT 308.9 million.

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