Only after a brief spell of gain, stocks plunged last week amid apprehensions that the government might not come up with investor-friendly incentives in the upcoming budget.
The benchmark General Index of Dhaka Stock Exchange slumped to 5,397 points, registering a fall of 320 points, or 5.6 percent, week on week. The key index of Chittagong Stock Exchange, Selective Categories Index, dropped 2.36 percent to 9,700 points.
Market insiders said the finance minister's firm position on not allowing money whitening through the stockmarket left the share prices in the red in the first half of the last week.
Talk of the government imposing tax on capital gains and mandatory tax identification numbers had also dented investor confidence, they said.
The central bank has extended the deadline for banks to trim down their single borrower exposure limit by four months to December from August. In line with the new circular, commercial banks with merchant banking or brokerage operations would now have to cut its single borrower exposure to 15 percent of their paid-up capital.
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