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The market opened sharply lower and the key index of the Dhaka bourse dropped below 5200-mark in early trading, as the news of possible tax measures in the upcoming budget triggered a fresh round of sell-off.
The Finance Minister Abul Hassan Mahmood Ali is all set to unveil the national budget today at 3:00pm for FY25.
The investors have been suffering a crisis of confidence for long and many investors reduced market activity ahead of the budget announcement, said a leading broker.
The investors trimmed their exposure to the stock market owing to lingering economic uncertainties fuelled by inflation pressure and a declining forex reserve while possible capital gain tax over Tk 5 million in the next budget exacerbated the market sentiment.
Following the previous day’s fall, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by more than 32 points or 0.61 per cent to 5,192, after 90 minutes of trading at 11:30am, when the report was filed.
Two other indices also saw a sharp fall at opening with the DS30 index, comprising blue chips, losing 7 points to 1,847 while the Shariah Index (DSES) fell 8 points to 1,128 till then.
Turnover, another important indicator of the market, remained low and amounted to Tk 2.10 billion till then.
Of the issues traded till then, 278 declined, 46 advanced, and 55 issues remained unchanged on the DSE trading floor till then.
BAT Bangladesh was the most traded stock till then with shares worth Tk 250 million changing hands, followed by Unilever, Meghna Petroleum, and Fortune Shoes.
The Chittagong Stock Exchange also saw a sharp fall till then with its All Shares Price Index (CASPI)—losing 53 points to stand at 14889, also at 11:30am.