The Financial Express

Stocks open sharply higher on budget hopes

| Updated: June 06, 2021 17:29:35

Stocks open sharply higher on budget hopes

The market opened sharply higher on Thursday as investors are putting fresh bets on stocks amid budgetary expectations.

Finance Minister AHM Mustafa Kamal is set to unveil the national budget for the Fiscal Year (FY) 2021-2022 today evening.

The Finance Minister is likely to propose to cut the corporate tax rate for both listed and non-listed companies while the ongoing scope to invest undisclosed money in the capital market may keep unchanged.

Following the previous day’s marginal gain, the market opened higher and the DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 42.15 points or 0.70 per cent to reach 6,061 within the first 30 minutes of trading when the report was filed at 10:30 am.

Two other DSE indices saw an upward trend till then with the DS30 index, comprising blue chips, gained 14.52 points to reach 2,209 and the Shariah Index (DSES) rose8.66 points to stand 1,293 points.

Turnover, another important indicator of the market, stood at Tk 3.58 billion within the first 30 minutes of trading at 10:30 am.

Market operators said lower returns from the money market, easing virus worries coupled with positive expectations from the national budget boosted the investors’ confidence.

The high-net-worth investors have been injecting fresh funds into the market for the past few weeks targeting capital gains as returns from the money market have declined significantly, said a leading merchant banker.

Of the issues traded till then, 215 advanced, 59 declined and 54 remained unchanged on the DSE trading floor till then.

Rupali Insurance was the most traded stock till filing of this report with shares worth Tk 244 million changing hands, closely followed by Beximco, LankaBangla Finance, AB bank, and BD Thai Aluminum.

The port city bourse – the Chittagong Stock Exchange – (CSE) also opened sharply higher with CSE All Share Price Index- CASPI-gaining 94 points to stand at 17,537, also at 10:30 am.

Of the issues traded till then 73 advanced, 35 declined and 16 remained unchanged with Tk 62 million in turnover.

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