Staff Correspondent
Dhaka stocks gained on Tuesday ending a four-day plunge as the jittery investors gave a pause in the panic-driven sell-offs after the finance minister told Jatiya Sangsad on Monday evening that the government had taken no decision on tax measures on the capital market.
Investors said that they became hopeful about the market as a number of ruling party lawmakers blasted Muhith for failing to stabilise the volatile market and demanded action against the market manipulators.
The benchmark general index of the Dhaka Stock Exchange or DGEN gained 67.98 points, or 1.26 percent, on Tuesday to close at 5,444.28 points.
The DGEN had shed 412 points in the previous four trading days because of panic-driven selling by investors over the rumours that the government would introduce gains tax and make TIN mandatory for BO accounts.
Muhith at a parliament session on Monday faced criticism from several ruling party lawmakers for not taking action against the market manipulators. They asked for clarification from the finance minister about whether the government had any plan to impose tax on capital gain and make TIN mandatory for opening BO accounts.
The minister told the parliament that the government had not taken any decision yet on the tax measures and a certain quarter was spreading rumours.
‘All the issues that made the investors panicky over the last few weeks are likely to come under consideration of the government and to see the next move of the government the investors refrained themselves from sell-offs,’ said a stockbroker.
‘Some investors also went for buying on the day following last two days of massive fall to adjust their portfolios,’ he added.
Turnover on the day inched up to Tk 349.89 crore from the previous day’s Tk 344.04 crore.
Out of 259 traded issues on the day, 216 advanced while 39 declined and six remained unchanged.
Trading on DSE started upbeat on Tuesday as the index skyrocketed by gaining 153 points in five minutes from the opening bell. The gaining streak continued for two hours with a time to time drop. After 1pm the index stared crawling down as some investors went for selling.
Market experts, however, said that such gain would not sustain if the government could not come up with concrete measures to stabilise the market.
Salahuddin Ahmed Khan, a professor of finance at Dhaka University, said, ‘In the present scenario such one day rise can not indicate that the market would rebound.’
‘The investors seemed to stop the panic selling and now the government has to do the rest to bring back the confidence and take measures to increase liquidity in the market,’ he said.
Akter H Sannamat, a capital market analyst, said, ‘The gain on Tuesday would hardly sustain if the government could not come up with immediate measures to address the situation.’
‘The government has to clear the confusion about the gain tax and TIN on BO accounts and the central bank also needs to come up with a positive attitude to the market,’ he said.
He also said the Securities and Exchange Commission would also have to become fully functional to initiate stabilising move for the market.
Some investors, meanwhile, formed a human chain programme in front of the entrance of the DSE building at 12:30pm demanding the resignation of finance minister and Bangladesh Bank governor Atiur Rahman for their failure to stabilise the market.
They also welcomed ruling party lawmakers’ concern over the issue.
Dhaka stocks gained on Tuesday ending a four-day plunge as the jittery investors gave a pause in the panic-driven sell-offs after the finance minister told Jatiya Sangsad on Monday evening that the government had taken no decision on tax measures on the capital market.
Investors said that they became hopeful about the market as a number of ruling party lawmakers blasted Muhith for failing to stabilise the volatile market and demanded action against the market manipulators.
The benchmark general index of the Dhaka Stock Exchange or DGEN gained 67.98 points, or 1.26 percent, on Tuesday to close at 5,444.28 points.
The DGEN had shed 412 points in the previous four trading days because of panic-driven selling by investors over the rumours that the government would introduce gains tax and make TIN mandatory for BO accounts.
Muhith at a parliament session on Monday faced criticism from several ruling party lawmakers for not taking action against the market manipulators. They asked for clarification from the finance minister about whether the government had any plan to impose tax on capital gain and make TIN mandatory for opening BO accounts.
The minister told the parliament that the government had not taken any decision yet on the tax measures and a certain quarter was spreading rumours.
‘All the issues that made the investors panicky over the last few weeks are likely to come under consideration of the government and to see the next move of the government the investors refrained themselves from sell-offs,’ said a stockbroker.
‘Some investors also went for buying on the day following last two days of massive fall to adjust their portfolios,’ he added.
Turnover on the day inched up to Tk 349.89 crore from the previous day’s Tk 344.04 crore.
Out of 259 traded issues on the day, 216 advanced while 39 declined and six remained unchanged.
Trading on DSE started upbeat on Tuesday as the index skyrocketed by gaining 153 points in five minutes from the opening bell. The gaining streak continued for two hours with a time to time drop. After 1pm the index stared crawling down as some investors went for selling.
Market experts, however, said that such gain would not sustain if the government could not come up with concrete measures to stabilise the market.
Salahuddin Ahmed Khan, a professor of finance at Dhaka University, said, ‘In the present scenario such one day rise can not indicate that the market would rebound.’
‘The investors seemed to stop the panic selling and now the government has to do the rest to bring back the confidence and take measures to increase liquidity in the market,’ he said.
Akter H Sannamat, a capital market analyst, said, ‘The gain on Tuesday would hardly sustain if the government could not come up with immediate measures to address the situation.’
‘The government has to clear the confusion about the gain tax and TIN on BO accounts and the central bank also needs to come up with a positive attitude to the market,’ he said.
He also said the Securities and Exchange Commission would also have to become fully functional to initiate stabilising move for the market.
Some investors, meanwhile, formed a human chain programme in front of the entrance of the DSE building at 12:30pm demanding the resignation of finance minister and Bangladesh Bank governor Atiur Rahman for their failure to stabilise the market.
They also welcomed ruling party lawmakers’ concern over the issue.
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