The Financial Express

Scope to legalise undisclosed money gives a fillip to stock market

| Updated: July 06, 2021 10:07:50

Scope to legalise undisclosed money gives a fillip to stock market

Dhaka bourse on Wednesday saw a sharp rise in the broad index following investors' increased participation a day before enforcing the country-wide strict lockdown.

On the day, all sectors of the listed securities witnessed price appreciation which helped the broad index to post a gain of 108 points.

Insiders said the continuation of whitening the undisclosed money on harder terms for the upcoming fiscal year allured many investors to take positions in the market.

The market opened the session positively and the DSE broad index DSEX continued the upward trend for half an hour.

After half an hour, the DSEX witnessed some correction but soon later it exhibited a steady upward trend till closure.

Finally, the core index settled at 6150.48 points with a rise of 1.78 per cent or 107.98 points.

On Wednesday, the turnover also increased moderately as many investors took a fresh position in sector-specific securities.

The shariah-based index DSES advanced 1.25 per cent or 16.35 points to close at 1314.75 points.

The DS30 index comprising blue-chip securities closed at 2208.37 points with a gain of 1.03 per cent or 22.55 points.

Of 371 issues traded, 307 advanced, 41 declined and 23 were unchanged.

The premier bourse DSE on Wednesday posted a turnover of Tk 14.07 billion which was 22.63 per cent higher than the turnover of the previous session.

According to a market review of International Leasing Securities, Dhaka stocks observed a superb session as investors remained active on the trading floor ahead of country-wide strict lockdown to be imposed from Thursday.

It said the continuation of whitening undisclosed money on harder conditions tempted many investors to take a position in the stock market.

According to the Finance Bill-2021 passed on Tuesday, the opportunity of whitening the undisclosed money has been offered for the upcoming fiscal year subject to payment of 25 per cent tax.

Besides, 5.0 per cent penal tax will have to be paid on the computed amount of taxes for the investment of undisclosed money in the capital market.

The opportunity of whitening the undisclosed money subject to payment of 10 per cent tax ended Wednesday.

Of the major sectors which witnessed price appreciation on Wednesday, bank advanced 2.0 per cent, engineering 1.1 per cent, financial institutions 2.5 per cent, fuel & power 1.4 per cent, general insurance 6.2 per cent, pharmaceuticals & chemicals 0.8 per cent, telecommunication 1.1 per cent and textile 1.7 per cent.

Investors' participation was concentrated mostly on the pharmaceuticals & chemicals sector which grabbed 15.7 per cent of the market turnover followed by textile 13.9 per cent, general insurance 11.9 per cent, bank 11.8 per cent and engineering 7.7 per cent.

Square Pharmaceuticals topped the scrip wise turnover chart with a value of Tk 875 million followed by Beximco Tk 469 million, Keya Cosmetics Tk 364 million, Delta Life Insurance Company Tk 360 million and Sandhani Life Insurance Company Tk 214 million.

Northern Islami Insurance was the number one gainer with a rise of 10 per cent or Tk 5.6 to close at Tk 61.60 each.

Monno Fabrics was the worst loser after declining 9.73 per cent or Tk 3.3 to close at Tk 30.60 each.

On the Chittagong Stock Exchange (CSE), the benchmark index CASPI advanced 1.84 per cent or Tk 321.51 points to close at 17795.04 points.

Of 316 issues traded, 247 advanced, 51 declined and 18 were unchanged and the port city bourse CSE posted a turnover of Tk 788.25 million on Wednesday.

[email protected]

Share if you like