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Bourses bounce back on tax review hope.

Stock markets rebounded on Wednesday, after remaining flat in the past few sessions, as investors showed their buying appetite on budget-review expectations.

The market opened on positive note and the upturn continued until end of the session with no sign of reversal. At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 29.73 points or 0.55 per cent to finish at 5,410. Market insiders said tax review expectations coupled with June closing year-end earnings and dividend declarations prompted investors to inject fresh funds into stocks. In the wake of strong criticism from market stakeholders, the National Board of Revenue (NBR) chairman hinted at the possibility of reviewing the proposals announced in the budget for fiscal year (FY) 2019-20.

The securities regulator also sent a set of proposals to the NBR on Tuesday. A leading broker said possibility to revise the proposed tax on listed companies' reserve and retained earnings made investors hopeful. Two other indices also ended higher.

The DS30 index, comprising blue chips, advanced 15.06 points to finish at 1,911 and the DSE Shariah Index gained 11.11 points to close at 1,241. Turnover, another important indicator of the market, stood at Tk 4.31 billion, 5.0 per cent lower than the previous day's turnover of Tk 4.53 billion. A total of 115,299 trades were executed in the day's trading session with trading volume of 114.77 million securities.

The market capitalisation of the DSE also rose to Tk 3993 billion on Wednesday, from Tk 3969 billion in the previous session.

The gainers took a modest lead over the losers as out of 353 issues traded, 173 advanced, 124 declined and 56 issues remained unchanged on the DSE trading floor. BGIC was the day's best performer, posting a gain of 8.84 cent while IPDC Finance was the worst loser, losing 17.98 per cent following its price adjustment after record date.

The port city bourse, Chittagong Stock Exchange, also ended higher with its CSE All Share Price Index - CASPI -advancing by 83 points to settle at 16,561 and the Selective Categories Index - CSCX -gaining 51 points to finish at 10,036. Here too, the losers beat gainers, as 130 issues closed higher, 103 lower and 34 remained unchanged on the CSE trading floor.

The port city bourse traded 9.67 million shares and mutual fund units worth Tk 394 million in turnover. On Tuesday, stocks markets witnessed another flat session, as investors mostly followed cautious stance ahead of June closing. DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 1.80 points or 0.03 per cent, finishing the day at 5,380. Market analysts said despite the market inched up, most of the investors remained cautious as they awaited the government move to review the proposed taxes on listed companies. Two other indices also closed slightly higher.

The DS30 index, comprising blue chips, advanced 2.66 points to finish at 1,896 and the DSE Shariah Index gained 0.77 point to close at 1,230. Turnover, another important indicator of the market, rose to Tk 4.53 billion, which was 20 per cent higher than the previous day's turnover of Tk 3.78 billion. A total number of 116,655 trades were executed in the day's trading session with trading volume of 121.64 million securities.

The port city's bourse, the Chittagong Stock Exchange (CSE), also ended marginally higher with its CSE All Share Price Index - CASPI -advancing 6.62 points to settle at 16,477 and the Selective Categories Index - CSCX -gaining 3.16 points to finish at 9,985. Here too, the losers beat gainers, as 113 issues closed lower, 97 ended higher and 52 remained unchanged on the CSE trading floor.

The port city bourse traded 33.41 million shares and mutual fund units worth Tk 963 million in turnover. On Monday, stocks also witnessed flat with falling trend of most of the major price indices at Dhaka and Chittagong Stock Exchanges despite higher transactions.

The day's trade value at the DSE increased to Tk 378.15 crore from Sunday's Tk 338.20 crore and the daily trade also rose to 12.45 crore share from 10.05 crore share of the previous session.

The broader DSEX of the DSE closed the day with 4.74 points up at 5,379.15.

The blue-chip DS30 and the Shariah DSES also closed the same trend with 2.90 point up at 1,893.82 and with 1.38 points down at 1,230.04. At the DSE, prices of 155 securities out of the day's 352 closed higher against 156 losing issues.

The Chittagong Stock Exchange (CSE) closed the day of the week with downward trend with its major CASPI 38.22 points down at 16,470.98. At the CSE, 269 issues traded while 106 closed higher against 118 closed lower when 2.52 crore shares worth Tk 79.28 crore changed hands. On Sunday, the opening day of the week, stocks ended marginally lower for the second straight session as cautious investors sold sector specific shares. DSEX, the prime index of the Dhaka Stock Exchange (DSE), settle at 5,383, shedding 11.73 points or 0.21 per cent over the previous session. Two other indices also ended marginally lower.

The DS30 index, comprising blue chips, fell 2.32 points to finish at 1,896 and the DSE Shariah Index lost 1.84 points to close at 1,231. Turnover, another important indicator of the market, also fell to Tk 3.38 billion, which was 24 per cent lower than the previous day's turnover of Tk 4.45 billion. A total number of 99,497 trades were executed in the day's trading session with trading volume of 100.48 million securities.

The market capitalisation of the DSE also fell to Tk 3,969 billion on Sunday, from Tk 3,978 billion in the previous session. CSE All Share Price Index - CASPI -losing 13 points to settle at 16,509 and the Selective Categories Index - CSCX -shedding 8.0 points to finish at 10,002. Here too, the losers beat gainers, as 149 issues closed lower, 62 ended higher and 40 remained unchanged on the CSE trading floor.

The port city bourse traded 37.85 million shares and mutual fund units worth Tk 1.13 billion in turnover. Earlier, stocks took a down-turn in the outgoing week, snapping a three-week gaining streak, as some proposed budgetary measures for the capital market have rattled the investors.

The correction was triggered by post-budget reaction as the budget stimulus might prove counterproductive, market analysts said.

The stimulus for the capital market was proposed in the national budget for the upcoming fiscal year, 2019-20, unveiled in the previous week. On Thursday, the last trading day of the outgoing week country's both the bourses, Dhaka and Chittagong Stock Exchanges ended in a downbeat in price and amount of transaction.

The capital bourse, Dhaka Stock Exchange (DSE) witnessed a modest session and closed in negative zone after a two-day gaining streak amid profit booking selling pressure.

The investors, however, remained cautious as they awaited the government move to review the proposed taxes on listed companies. Meanwhile, market turnover decreased and stood at Tk 4.5 billion and the core index reached 5,395.6 points with a loss of 15.8 points. On the other hand, the port city, Chittagong Stock Exchange (CSE) closed in red zone on Thursday. CSCX and CASPI decreased by 27.1 and 42.8 points respectively.
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Publication:The News Today (Dhaka, Bangladesh)
Date:Jun 27, 2019
Words:1368
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