Indices see sharp rise

The market witnessed sharp rise Sunday with improving turnover as investors went for buying spree following the news of withdrawal of capital gain tax in the approved budget for the fiscal year 2014-15.

The market started with an upward trend in the morning, which continued till the market closure. Eventually, DSEX, the prime index of the Dhaka Stock Exchange (DSE) went up by 77.64 points or 1.76 per cent to close at 4,487.07 points.

The other two indices also saw sharp rise. The comprising blue chips, DS30 gained 22.32 points or 1.38 per cent to close at 1,638.90. The DSE Shariah Index (DSES) rose 10.95 points or 1.08 per cent to close at 1,017.17 points.

The total turnover on DSE stood at Tk 3.90 billion, which was 28.85 per cent higher compared to previous session's value of Tk 3.03 billion.

"Withdrawal of the proposed capital gain tax has improved investors' sentiment closing the heightening concern over it for the last few weeks," commented LankaBangla Securities, in its daily market analysis.  

The 10 per cent tax rebate facility for companies giving 30 per cent or more dividends has been proposed. This is also very encouraging as this facility was rescinded in proposed budget, said the stock broker.

"Government's decision to withdraw from the capital gain tax which was earlier proposed in the budget definitely played a staggering role leaving a positive mark on the market," said Zenith Investments.

Investors gladly welcomed the news, and their positive sentiment was clearly reflected in the stocks, setting the market in a vibrant mode, said the Zenith analysis.

BRAC EPL, a stock brokerage said, "Market started the week on a positive note following the government's decision to drop capital gain tax for individual investors".

The gainers took a strong lead over the losers as out of 296 issues traded, 236 advanced, 44 declined and 16 remained unchanged on the DSE floor.

All the sectors ended in green except telecommunication as the largest sector in the market lost 0.80 per cent.

NBFIs and food posted staggering gains of 4.15 per cent and 3.26 per cent respectively. They were followed by banks which closed 2.18 per cent higher. Fuel and power and pharmaceuticals saw moderate gains of1.57 per cent and 1.28 per cent respectively.