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Stocks slip into red after two-day gain

FE Online Report | Published: June 20, 2019 16:38:21 | Updated: June 22, 2019 10:16:09


Stocks slipped into the red on Thursday, snapping a two-day gaining streak, as cautious investors sold sector-wise shares.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), settle at 5,395, shedding 15.77 points or 0.29 per cent after adding 36 points in the past two sessions.

Market analysts said most of the investors remained cautious as they awaited the government move to review the proposed taxes on listed companies.

Strong criticism from market stakeholders, the National Board of Revenue (NBR) chairman hinted at the possibility of reviewing the proposal of the budget for fiscal year (FY) 2019-20.

The Bangladesh Securities and Exchange Commission (BSEC) also said that they would sit with the finance minister (FM) and the NBR chairman to discuss the issue.

The Finance Minister AHM Mustafa Kamal proposed, among other, imposition of 15 per cent additional tax on retained earnings and reserves, if the amount exceeds 50 per cent of the paid-up capital of the company.

The budget 2019-20 also proposed imposing 15 per cent tax on stock dividend to promote cash dividend as part of efforts to increase money flow into the stock market.

Two other indices also ended marginally lower. The DS30 index, comprising blue chips, fell 3.42 points to finish at 1,894 and the DSE Shariah Index lost 1.80 points to close at 1,233.

Turnover, another important indicator of the market, also fell to Tk 4.45 billion, which was 20 per cent lower than the previous day’s turnover of Tk 5.54 billion.

A total number of 117,880 trades were executed in the day’s trading session with trading volume of 133.80 million securities.

The market capitalisation of the DSE also fell to Tk 3,978 billion on Thursday, from Tk 3,989 billion in the previous session.

The losers took a strong lead over the gainers, as out of 351 issues traded, 222 declined, 85 advanced and 44 issues remained unchanged on the DSE trading floor.

Sunlife Insurance was the day’s best performer, posting a gain of 7.33 per cent while Sonar Bangla Insurance was the worst loser, losing 7.80 per cent.

The port city’s bourse, the Chittagong Stock Exchange, also ended marginally lower with its CSE All Share Price Index – CASPI –losing 42 points to settle at 16,522 and the Selective Categories Index - CSCX –shedding 27 points to finish at 10,011.

Here too, the losers beat gainers, as 150 issues closed lower, 69 ended higher and 44 remained unchanged on the CSE trading floor. 

The port city bourse traded 13.89 million shares and mutual fund units worth Tk 419 million in turnover.

 

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