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The Dhaka bourse on Tuesday closed in the red as a majority of the listed securities lost prices a day after the interim government announced its budget for FY26.
The day's session opened positively but soon the DSEX, broad index of the Dhaka bourse, started sliding down. The downward trend continued for more than two hours. At the end of the session, the DSEX settled at 4664.79 points with a loss of 0.52 per cent or 24.72 points.
Top index draggers include blue chip stocks, such as Square Pharmaceuticals, British American Tobacco Bangladesh Company, Grameenphone and Renata.
In the proposed budget, the interim government offered some incentives, such as a reduction in source tax on share transactions and corporate tax paid by merchant banks.
The government also widened the gap of corporate tax rates between listed and non-listed companies to 7.5 per cent from the existing 5 per cent amid a long-standing demand from the market operators and experts.
Insiders said investors, especially the big ones, expected a reduction in capital gain tax.
"Tuesday's market behaviour is not comprehensible," said S M Galibur Rahman, head of research and strategic planning at Shanta Securities, adding that market supportive measures in the budget proposal were "not bad".
Of the 394 issues traded, 93 advanced, 239 declined and 62 were unchanged.
The DSE posted a turnover of Tk 2.29 billion, 16.81 per cent lower than the previous session.
A majority of the securities that experienced correction on Tuesday belong to 'A' category.
Of the 30 blue chip stocks, 21 declined. The DS30 index lost 0.54 per cent or 9.57 points to close at 1746.21 points.
The market usually witnesses sales pressure ahead of any festival, such as Eid, as investors need money to cover holiday expenses.
The market will conduct only one session on Wednesday ahead of the 10-day holiday to celebrate Eid-ul-Azha.
So, Tuesday's selling pressure does not seem rational as investors will not be able to withdraw funds today (Wednesday) because the sale proceeds will not be matured within one day.
However, investors can realize funds against incomplete sale proceeds by paying extra charges.
Md Ashequr Rahman, managing director of Midway Securities, said investors might not be happy with the budgetary measures.
"It's [budget proposals] a step in the right direction, but not enough to see any positive reflection in the market," Mr Rahman said.
He also said only the budgetary measures were not enough to revive the market as there were many inherent problems in the market and overall economy.
On Tuesday, Sonali Aansh Industries was the number one gainer with an appreciation of 9.20 per cent while Midland Bank was the worst loser after declining 9.05 per cent on the DSE.
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