The price indices of both the bourses Monday reversed following investors' buying spree with anticipating a possible review of proposed budgetary measures, insiders said.
"Many investors have come to know that the moves have been taken by the securities regulator and bourses to pursue the government for reviewing the budgetary measures," said a top broker.
He said investors' expectation on the possible reconsideration of budgetary measures has also developed as the market experts and stakeholders differed with some budget proposals which affected the market in the previous trading session.
On Monday the the DSE benchmark index (DSEX) went up by 1.60 per cent or 69.62 points to close at 4415.96 points, whereas the index shed 1.14 per cent or 50.20 points to close at 4346.33 on Sunday.
The DSE 30 and DSEX Shariah Index (DSES) also rose 1.79 per cent or 28.74 points to close at 1629.04 points and 1.84 per cent or 18.42 points to close at 1015.45 points respectively.
According to the officials of the Bangladesh Securities and Exchange Commission (BSEC), the BSEC policy makers will sit with the finance minister AMA Muhith today (Tuesday) and will urge him to reconsider some budget proposals.
"The regulator will discuss the budgetary measures which should be reviewed considering the normal growth of the capital market," said a senior official of the securities regulator.
The official said the revenue board did not inform the regulator before making the proposal of imposing tax on the gains incurred by individual investors.
"According to an instruction of the finance minister, any organisastion will consult with the BSEC prior to taking any measure that can affect the capital market. But the revenue board did not comply with the finance ministry's instruction," the BSEC official said.
On Monday both the markets opened with a positive trend which continued till the market closure. As a result, the CSE benchmark index also posted a sharp gain of 212.79 points to close at 13603.47 points.
In the previous trading session, the prime index of the port city bourse shed 146.71 points to close at 13390.67.
Among 294 traded issues, 211 advanced, 65 declined and the remaining 18 remained unchanged on the DSE at the end of Monday's trading session.
And the turnover value stood at Tk 4.21 billion which was Tk 4.16 billion in the previous session.
Lafarge Surma Cement topped the day's turnover chart for the second consecutive session with shares worth Tk 329.54 million followed by BSRM Steels, Grameenphone, MJL BD and GPH Ispat. Asia Insurance was the day's highest gainer, posting a rise of 10.68 per cent following its dividend declaration while Wata Chemicals was the day's worst loser, slumping by 5.58 per cent.
The officials of the Dhaka Stock Exchange (DSE) have said the bourses have also been given time to discuss the proposed budgetary measures.
"The exchanges will sit with the finance minister on June 12 next with a proposal of reviewing some proposed budgetary measures," said a DSE official.
Meanwhile, some stakeholders supported the proposal of capital gain tax stating that the rate of tax is very nominal compared to the amount of gains incurred by individual investors.
"It's not logical that an investor will count a profit of Tk 1.0 million but will not give a tax worth only 30 thousand taka. However, the proposal of gain tax is not feasible in the prevailing market situation," said a chief executive officer of a leading merchant bank.
