Stocks bounced back on Wednesday, snapping a two-day losing streak, as bargain hunters put fresh bets on selective stocks riding on positive expectations from the upcoming national budget.
Finance Minister AHM Mustafa Kamal is set to unveil the national budget for the Fiscal Year (FY) 2022-23 today (Thursday). The Finance Minister is likely to propose to cut the corporate tax rate for both listed and non-listed companies.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 15.64 points or 0.24 per cent to settle at 6,484, after losing around 29 points in the past two consecutive sessions.
Two other indices also edged higher. The DSE 30 Index, comprising blue chips, advanced 2.87 points to close at 2,353 and the DSE Shariah Index (DSES) rose 2.06 points to settle at 1,412.
Turnover, the crucial indicator of the market, also rose to Tk 9.20 billion, which was 24 per cent higher than the previous day's tally of Tk 7.40 billion.
Meanwhile, Meghna Insurance Company made a flying trading debut on Wednesday as its shares were frozen at 10 per cent upper limit circuit breaker despite it reported lower profit.
The company's share closed at Tk 11 each on the DSE, soaring 10 per cent, the highest allowable limit on its issue price of Tk 10 each.
The insurer's net profit after tax for nine months from January-September 2021 stood at Tk 27.05 million. Pre-IPO EPS was Tk 1.29 and post-IPO EPS was Tk 0.68. The net asset value (NAV) per share per share was Tk 16.52 as on September 30, 2021.
Some 35 trades were executed on the DSE with a total of 594 shares changing hands at the halted price as most of the IPO shareholders were unwilling to sell their stakes hoping for higher profit in future.
Meghna Insurance raised Tk 160 million by issuing over 16 million ordinary shares at an offer price of Tk 10 per share under the fixed price method.
Market analysts said positive expectations from the upcoming national budget might encourage investors to put fresh bets on lucrative stocks.
"On the back of favorable regulatory interventions investors seemed to be much more confident on the trading floor," said EBL Securities.
Stocks rebounded in the gaining streak after a two-day break, as the bargain hunters showed some buying interest on lucrative stocks, according to International Leasing Securities.
The investors are anticipating some incentives from the national budget for the FY 2022-23 to be unveiled today (Thursday). As a result the investors increased their participation in the market, said the stockbroker.
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