Stocks posted moderate gain in the post-budget first week with record transactions as investors rushed to put bets on stocks with fresh funds to enjoy the existing tax benefits.
Week-on-week, DSEX, the key index of the Dhaka Stock Exchange (DSE), went up by 13.21 points or 0.22 per cent to settle at 6,066.
It was also the highest level of DSEX in 40 months since February 14, 2018, when the core index was 6,102. DSEX added 812 points in the nine consecutive weeks.
Market capitalisation of DSE also surged to a fresh all-time high at more than Tk 5,099 billion on Thursday, surpassing the previous day's record high of Tk 5,097 billion, thanks to increased investor participation.
The daily trade turnover on DSE touched more than a decade high thrice during the week - Sunday, Wednesday, Thursday -- since the country's stock market had developed bubbles that soon burst.
The week's total turnover on the DSE jumped to Tk 121.88 billion which was Tk 102.58 billion in the week before.
The daily turnover averaged out at Tk 24.38 billion, which was 19 per cent higher than the previous week's average of Tk 20.52 billion.
Market experts said budgetary measures, lower returns on the money market, limited scope of investment in other instruments and regulatory reforms continued to cheer investors to park their funds on stocks.
The last minute rush to take the advantage of whitening black money through investment in the capital market by the end of this month might also have a contribution to push up the turnover, they said.
The new budget proposed to cut corporate tax rate for the listed firms by 2.5 percentage points to 22.5 per cent which added impetus to the ongoing market rally, said a merchant banker.
He noted that the corporate tax cut means companies will have a bigger share of the profit pie to themselves, which, in turn, potentially means a higher dividend payout for shareholders.
However, the ongoing facility to invest undisclosed money in the capital market would not be allowed in the next fiscal year.
The black money holders bet on stocks as the opportunity for whitening undisclosed money will expire this month, he said.
The last budget offered the opportunity to whiten the black money with only a 10 per cent penalty. But the opportunity was not given in the fiscal year 2021-2022.
The Chittagong Stock Exchange (CSE) also stayed afloat with the CSE All Share Price Index - CASPI -rising 42 points to settle at 17,585 and the Selective Categories Index - CSCX- gaining 20 points to close at 10,594.
Of the issues traded, 193 advanced, 123 declined and 18 remained unchanged on the CSE trading floor.
The port city's bourse traded 162.55 million shares and mutual fund units with turnover value of Tk 5.27 billion.
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