DSE Weekly review
Staff Correspondent
Dhaka stocks in the past week went into negative zone after a two-week bullish run as investors became uncertain about the post-budget market situation.
Market operators said many of the investors found the proposed budgetary measures for capital market discouraging.
As a result, the benchmark general index, or DGEN, of Dhaka Stock Exchange lost 213.64 points, or 3.57 per cent, to finish the week at 5,776.18 points.
Out of a total 264 traded in the week, 244 lost values, 19 advanced, and one remained unchanged. Average daily turnover also dropped by 23 per cent to Tk 546.32 crore from Tk 709.48 crore in the previous week as both institutional and individual inventors went into cautious trading.
Market operators said many of the investors became panicked after the announcement of the budget by finance minister AMA Muhith on June 9.
Muhith’s proposal to raise the tax on brokerage commission to 0.10 per cent from existing 0.05 per cent and to withdraw the tax rebate individuals get for investing in the capital market made the investors nervous, they said.
Investors feared that the market would fall further as the proposed budget did not offer any provision to legalise undisclosed money in the capital market, they said.
Before the announcement of proposed budget, the DGEN had gained for two weeks as the investors hoped that the government would allow legalising the undisclosed money in the capital market considering the liquidity crisis that has been prevailing in the market in the last five months.
Market operators said that a large number of investors refrained themselves from trading in the past week as they were waiting for the budget to be finalised by the end of this month to see the government’s stance over the matters as the leaders of Dhaka and Chittagong bourses requested the government to be more flexible about the capital market.
They also said a number of investors also went for selling out their stocks in fears that the government would not change its stance on investment of undisclosed money in the capital market.
‘As the proposed budget is a big deficit budget, the government will have to borrow a big chunk from the private banks. So, investors feared that liquidity crisis in the market will worsen,’ said an expert.
Market operators said that the trading pattern was irrational in the beginning of the week as the general index of the bourse was on a rollercoaster ride.
On Sunday, DGEN nosedived by 313.52 points, or 5.23 per cent, in an instant reaction to the budget proposal as the panic-driven investors went for blanket sell-offs.
But, on Monday the market went back into gaining streak with the DGEN gaining 228.44 points, or 4.02 per cent, as institutional investors became active reportedly on a government instruction.
On Tuesday, the DGEN fell again by 87.43 points, or 1.48 per cent.
The DGEN dipped by 4.47 points, or 0.07 per cent, on Wednesday, and the index lost 36.64 points, or 0.63 per cent, on Thursday.
The DGEN had gained 321 points in the previous six trading sessions before June 9 when Muhith placed before the
parliament the budget proposal for the fiscal year of 2011-12.
United Commercial Bank Ltd was the turnover leader of the week with shares worth Tk 158.17 crore changing hands.
The other turnover leaders were United Airways, City Bank, Uttara Bank, Pubali Bank, National Bank, LankaBangla Finance, Aftab Automobiles, Eastern Bank and
BSRM Steels.
Staff Correspondent
Dhaka stocks in the past week went into negative zone after a two-week bullish run as investors became uncertain about the post-budget market situation.
Market operators said many of the investors found the proposed budgetary measures for capital market discouraging.
As a result, the benchmark general index, or DGEN, of Dhaka Stock Exchange lost 213.64 points, or 3.57 per cent, to finish the week at 5,776.18 points.
Out of a total 264 traded in the week, 244 lost values, 19 advanced, and one remained unchanged. Average daily turnover also dropped by 23 per cent to Tk 546.32 crore from Tk 709.48 crore in the previous week as both institutional and individual inventors went into cautious trading.
Market operators said many of the investors became panicked after the announcement of the budget by finance minister AMA Muhith on June 9.
Muhith’s proposal to raise the tax on brokerage commission to 0.10 per cent from existing 0.05 per cent and to withdraw the tax rebate individuals get for investing in the capital market made the investors nervous, they said.
Investors feared that the market would fall further as the proposed budget did not offer any provision to legalise undisclosed money in the capital market, they said.
Before the announcement of proposed budget, the DGEN had gained for two weeks as the investors hoped that the government would allow legalising the undisclosed money in the capital market considering the liquidity crisis that has been prevailing in the market in the last five months.
Market operators said that a large number of investors refrained themselves from trading in the past week as they were waiting for the budget to be finalised by the end of this month to see the government’s stance over the matters as the leaders of Dhaka and Chittagong bourses requested the government to be more flexible about the capital market.
They also said a number of investors also went for selling out their stocks in fears that the government would not change its stance on investment of undisclosed money in the capital market.
‘As the proposed budget is a big deficit budget, the government will have to borrow a big chunk from the private banks. So, investors feared that liquidity crisis in the market will worsen,’ said an expert.
Market operators said that the trading pattern was irrational in the beginning of the week as the general index of the bourse was on a rollercoaster ride.
On Sunday, DGEN nosedived by 313.52 points, or 5.23 per cent, in an instant reaction to the budget proposal as the panic-driven investors went for blanket sell-offs.
But, on Monday the market went back into gaining streak with the DGEN gaining 228.44 points, or 4.02 per cent, as institutional investors became active reportedly on a government instruction.
On Tuesday, the DGEN fell again by 87.43 points, or 1.48 per cent.
The DGEN dipped by 4.47 points, or 0.07 per cent, on Wednesday, and the index lost 36.64 points, or 0.63 per cent, on Thursday.
The DGEN had gained 321 points in the previous six trading sessions before June 9 when Muhith placed before the
parliament the budget proposal for the fiscal year of 2011-12.
United Commercial Bank Ltd was the turnover leader of the week with shares worth Tk 158.17 crore changing hands.
The other turnover leaders were United Airways, City Bank, Uttara Bank, Pubali Bank, National Bank, LankaBangla Finance, Aftab Automobiles, Eastern Bank and
BSRM Steels.
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