Stocks unmoved by budget proposals

Stocks slipped back into the red on Sunday, the post-budget first session, as the proposed budget failed to meet investors' expectations.
The growing tension over the Covid-19 scare also kept the investors in the side line and most of the stock prices were supported by the floor price mechanism without trading.
DSEX, the key index of the Dhaka Stock Exchange, went down by 3.02 points or 0.07 per cent to close at 3,964.3
The DSE core index is hovering at 3,960 points in the last few sessions as most of the investors were reluctant to make any fresh investment in stocks amid worsening situation of the dreadful virus.
The budget failed to meet investors' expectation though the government allowed to invest undisclosed money in the stock market, similar opportunity has also been proposed for some other liquid assets, making capital market investment less attractive, according to EBL Securities.
The stockbroker noted that reduced gap between corporate tax for listed and non-listed companies will put further stress on securities regulator's steps to attract profitable business to be listed in the capital market.
"The proposed budget has brought no cheers for stock investors, who have been battered by a prolonged slump in indices, but proposed measures to develop the country's bond market was a welcome move," said a merchant banker, seeking anonymity.
Stockbrokers also said proposed reduction of corporate tax for non-listed companies will leave no positive impact on the capital market.
The DSE proposed to increase dividend income exemption limit to Tk 200,000 from the existing Tk 50,000, considering the present market scenario, but it remained same, said a leading broker.
'If the limit increases, the small investors will be benefited as they have suffered a lot due to market turmoil in recent years," he said.
Many investors were also cautiously analyzing the proposed budget before making any further investment decisions, said an analyst.
Turnover remained low to Tk 539 million, a 5.50 per cent higher than the previous day, as the investors were not showing any enthusiasm for buying shares.
Most of the shares remained stuck at the trading floor.
Of the issues traded, 247 remained unchanged while only 27 issues advanced and 24 declined on the DSE trading floor.
The DS30 index, comprising blue chips, also fell 2.72 points to finish at 1,329 and the DSE Shariah Index saw a fractional loss of 0.23 point to close at 919.
International Leasing Securities said, the floor prices rule along with depressed market outlook resulted into poor market participation.
The stockbroker noted that the panicked investors liquidated their position from pharma, power and miscellaneous sectors while the market observed some buoyancy on telecom and food.
A total number of 14,760 trades were executed in the day's trading session with trading volume of 27.36 million shares and mutual fund units.
The market-cap of the DSE also inched down to Tk 3,105 billion, from Tk 3,106 billion in the previous session.
Beximco Pharma topped the turnover chart with shares worth Tk 43 million changing hands, followed by Bangladesh Submarine Cable Company, Reckitt Benckisher, Central Pharma and Indo-Bangla Pharma.
ICB Employees Provident Mutual Fund One was the day's best performer, posting a gain of 9.68 per cent while Beximco Synthetics was the worst loser, losing 8.47 per cent.
The Chittagong Stock Exchange edged lower with its All Shares Price Index (CASPI)-losing 7.71 points to close at 11,259 and the Selective Categories Index - CSCX -shedding 4.50 points to finish at 6,821.
Of the issues traded, 16 gained, 22 declined and 63 remained unchanged on the CSE.
The port city bourse traded 1.70 million shares and mutual fund units worth Tk 25 million in turnover.

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