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Stocks inch up after bumpy ride on DSE

Eight mutual funds among top 10 gainers

FE Report | June 25, 2019 00:00:00

Stocks inched up on Monday, after two-day losing spell, as investors mostly followed cautious stance ahead of June closing.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled at 5,386, advancing 2.97 points or 0.05 per cent over the previous session.

Eight of the top 10 in the gainers' list were from the mutual fund sector. The sector also gained 4.60 per cent.

Prices of 34 mutual funds rose out of 37. Three remained unchanged on the prime bourse.

Market analysts said most of the investors adopted cautious stance as they are observing the government move to review the proposed tax measures for listed companies.

The Finance Minister AHM Mustafa Kamal proposed, among others, imposition of 15 per cent additional tax on retained earnings and reserves, if the amount exceeds 50 per cent of the paid-up capital of the company.

The finance minister also proposed imposition of 15 per cent tax on stock dividend to promote cash dividend as part of efforts to increase cash flow into the stock market.

In the wake of strong criticism from market stakeholders, the National Board of Revenue (NBR) chairman hinted at the possibility of reviewing the proposals announced in the budget for fiscal year (FY) 2019-20.

The DSE Shariah Index advanced 0.87 point to close at 1,232. However, the DS30 index, comprising blue chips, fell 2.89 points to finish at 1,893.

Turnover also rose to Tk 3.78 billion, which was 12 per cent higher than the previous day's turnover of Tk 3.38 billion.

EBL Securities said investors remained concerned over the tax review issue on excess reserve and also on stock dividend of listed companies.

The stockbroker noted that investors' watchful stance pulled the index flat zone as selling pressures spurred on sector specific stocks from telecommunication, banking and cement sectors.

Telecommunication witnessed the highest loss of 0.65 per cent, followed by engineering with 0.28 per cent, banking 0.21 per cent and pharmaceuticals 0.11 per cent.

On the other hand, power sector booked the highest gain of 0.25 per cent, followed by non-bank financial institutions with 0.13 per cent and food 0.12 per cent.

A total number of 103,450 trades were executed in the day's trading session with trading volume of 124.53 million securities.

The market capitalisation of the DSE fell to Tk 3,966 billion on Monday, from Tk 3,969 billion in the previous session.

The losers and gainers were almost same as out of 352 issues traded, 156 drifted lower, 155 nudged higher and 41 issues remained unchanged on the DSE trading floor.

United Power topped the turnover chart further with shares worth Tk 159 million changing hands, closely followed by JMI Syringes, Bangladesh Spinning Corporation, National Polymer and RN Spinning Mills.

SEML FBLSL Growth Fund was the day's best performer, posting a gain of 10 per cent while Peoples Leasing & Financial Services was the worst loser, losing 5.88 per cent.

However, the port city's bourse, the Chittagong Stock Exchange, ended marginally lower with its CSE All Share Price Index - CASPI -shedding 38 points to settle at 16,470 and the Selective Categories Index - CSCX -losing 20 points to finish at 9,982.

The losers beat gainers, as 118 issues closed lower, 106 ended higher and 45 remained unchanged on the CSE trading floor.

The port city bourse traded 25.20 million shares and mutual fund units worth Tk 793 billion in turnover.

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