Weekly stock mkt review

The stock market ended flat in the first week after the announcement of the new budget amid high volatility as higher capital gain tax imposition in the proposed budget disappointed the investors most. The week featured all five trading sessions. Among them, the market suffered loss in three sessions while two sessions closed in positive. Week-on-week, DSEX, the prime index of Dhaka Stock Exchange (DSE) went up by 12.26 points or 0.28 per cent to close at 4,408.80 points. The other two indices also closed positive. The DS30, comprising blue chips, gained 15.13 points or 0.93 per cent to close at 1,638.08 points. The DSE Shariah Index (DSES) went up by 10.41 points or 1.03 per cent to close at 1,018.24 points. The port city bourse, the Chittagong Stock Exchange (CSE) also inched up last week with its Selective Categories Index (CSCX) gained 76.36 points or 0.92 per cent to close the week at 8,410.43 points. The total turnover of the week amounted to Tk 20.95 billion on DSE which was Tk 20.29 billion in the previous week. The average daily turnover for the week stood at Tk 4.19 billion, registering an increase of 3.26 per cent over the previous week’s average of Tk 4.06 billion. “Proposed national budget for the fiscal year 2014-15, expectational mismatch and their consequential impact sustained throughout the week,” IDLC Investments, said in its weekly market analysis. Higher capital gain tax imposition disappointed the investors most, psychologically, said the merchant bank. Resultantly, cyclicality prompted and changed the mode of investments. The investors swapped across cap segments, looking for lucrative hunt, said the merchant bank. The investors also started changing preference across sectors and stocks. Some large caps shuffled their phases, especially Lafarge Surma Cement’s interim dividend disclosure concentrated investors mostly on it to be in a selling mood, the merchant bank said. They started focusing on telecommunications, especially GP, entering in a gaining streak throughout the week and GP gained 4.69 per cent alone, it said.