Stocks tumbled on Tuesday, the first session of the fiscal year (FY) 2019-20, as investors mostly on selling binge on major sectors’ shares.
Parliament passed the tax measures for the fiscal year (FY) 2019-20 on Saturday, reducing tax on retained earnings and reserves of companies to 10 per cent from initially-proposed 15 per cent in the face of outcry from businesses.
Market analysts said investors expressed mixed reaction on final budget as some argued that the step would discourage business expansion while some said the retail investors will be benefited.
A leading stockbroker said the market slipped into the red as most of the investors were analysing possible impact of the final budget.
The market opened on negative note and the downturn continued until end of the session amid modest volatility.
At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 36.69 points or 0.67 per cent to finish below 5,400-mark at 5,384.
Two other indices also ended lower. The DS30 index, comprising blue chips, fell 16.51 points to finish at 1,912 and the DSE Shariah Index shed 9.52 points to close at 1,235.
Turnover, another important indicator of the market, stood at Tk 4.82 billion, which was 2.77 per cent higher than the previous day’s turnover of Tk 4.69 billion.
Runner Automobiles topped the turnover chart with 1.34 million shares worth Tk 137 million chaning hands.
The other turnover leaders were National Polymer, United Power, Bashundhara Papers Mills and Esquire Knit Composite.
A total number of 128,600 trades were executed in the day’s trading session with trading volume of 146.23 million securities.
The market capitalisation of the DSE also fell to Tk 3,980 billion on Tuesday, from Tk 3,998 billion in the previous session.
The losers took a modest lead over the gainers as out of 353 issues traded, 174 declined, 143 advanced and 36 issues remained unchanged on the DSE trading floor.
Runner Automobiles was the day’s best performer, posting a gain of 9.96 cent while SEML FBLSL Growth Fund was the worst loser, losing 7.40 per cent.
The port city bourse, Chittagong Stock Exchange, also ended lower with its CSE All Share Price Index – CASPI –shedding 122 points to settle at 16,512 and the Selective Categories Index - CSCX –losing 74 points to finish at 10,010.
Here too, the losers beat gainers, as 125 issues closed lower, 115 higher and 23 remained unchanged on the CSE trading floor.
The port city bourse traded 12.85 million shares and mutual fund units worth Tk 541 million in turnover.
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