Stocks plunge at opening as capital gain tax stay

Stocks plunged at opening Sunday, after a three-day rise, as jittery investors sold off shares following the news that the capital gain tax stayed in the upcoming national budget.

The finance bill passed on Saturday at the parliament imposing capital gain tax on individual investors for the first time, applicable when profits exceed Tk 5.0 million.   

Following the news, jittery investors went on heavy sell-off as soon as the market opened, with the key index of the Dhaka Stock Exchange (DSE), going down by more than 41 points or 0.76 per cent to 5314, after one and a half hour of trading at 11:30am, when the report was filed.

The blue-chip DS30 index, a group of 30 prominent companies, also plunged nearly 14 points to 1,908 while the DSES index, which represents Shariah-based companies, shed 9 points to 1,174.

Turnover, another important indicator of the market, stood at Tk 1.71 billion till then.

Of the issues traded till then, 305 declined, 36 advanced, and 42 issues remained unchanged on the DSE trading floor till then.

Saif Powertec was the most traded stock until then, with shares worth Tk 125 million changing hands.

babulfexpress@gmai.com