Dhaka stocks close higher amid choppy trading

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FE Report
Dhaka stocks closed marginally higher amid choppy trading Wednesday as profit taking on some heavyweights capped early gains.
Steepest rise in banking and leasing issues put the market on the positive terrain despite telecommunications, fuel and power, and pharmaceuticals declining on profit taking.
But conflicting remarks made by policy makers recently on imposing tax on capital gains and splitting face value has discomforted the investors, making the market volatile, dealers said.
The benchmark DSE General Index (DGEN) closed at 5,655.83 with a meagre gain of 11.64 points or 0.20 per cent, after hitting highest 5,681.45 and lowest 5,644.19.
The broader All Shares Price Index (DSI) rose 6.0 points or 0.12 per cent to 4,644.67 while DSE-20 Index comprising blue chips gained 34.43 points or 1.14 per cent to 3,053.01.
National Board of Revenue, at a press briefing Tuesday, said the board would not take any measure that might hurt small investors.
But the parliamentary standing committee on the same day said the Securities and Exchange Commission (SEC) was asked to impose 5 per cent tax on profit generated from share trading.
The committee also asked the market regulator to make tax identification numbers (TIN) mandatory for prospective investors to open beneficiary owner's (BO) accounts.
Banking issues, which make up one-fourth of Dhaka stocks' market capitalisation, got a boost rising 2.81 per cent after the finance minister in the previous day said face value of a listed company share might be set at Tk 10 to make share affordable for the general investors.
Among the banks, Jamuna Bank was the largest gainer rising 7.65 per cent, followed by EXIM Bank 7.17 per cent and Eastern Bank Limited 6.58 per cent. Fourteen banks gained more than three per cent.
Leasing or non-banking financial institutions sector climbed 1.23 per cent with five companies gaining more than five per cent.
Mutual funds continued to lose their pulse losing 0.88 per cent. Telecommunications - which accounts for one-fifth of the total market - fell as Grameenphone, lone listed company in this sector, dropped 1.10 per cent to Tk 324.50.
Fuel and power sector was down 0.88 per cent, pharmaceuticals 0.47 per cent and cement 1.59 per cent. General insurers finished 1.84 per cent while life insurers 1.25 per cent higher.
Turnover improved significantly as it stood at Tk 13.65 billion, up by more than 16 per cent over the previous session. Out of 248 issues traded, 139 gained, 106 declined and three remained unchanged.