Bourses want more from Muhith

Dhaka stocks ended yesterday in the negative territory on the first full trading day after announcement of the national budget for fiscal 2018-19, indicating it fell short of investor expectations.

DSEX, the benchmark index of the premier bourse, fell 43.37 points, or 0.80 percent, finishing the day at 5,323.29 points.

The index also fell 32.03 points on Thursday when the budget was announced.

The budget proposed a 2.5 percentage point cut in corporate tax for listed banks, non-bank financial institutions and insurance companies to 40 percent, which was cheered by investors.

Finance Minister AMA Muhith also did not impose any new tax on the earnings from stock market investors.

In pre-budget discussions, Dhaka Stock Exchange and Chittagong Stock Exchange urged the government to widen the difference of corporate tax between listed and non-listed companies.

They have also been demanding a cut in the advance income tax on dividends and 100 percent tax exemption for bourses for three years. “Nothing has been met in the budget,” said M Shaifur Rahman Mazumdar, managing director of the CSE.

He spoke in a post-budget press conference organised by the CSE at its Dhaka office yesterday.

“It's true that we have achieved nothing more than a cut in corporate tax for listed banks,” said KAM Majedur Rahman, managing director of the DSE.

Rahman said they will press their demand to the finance minister, who has given his word to sit with the officials of the bourses after the budget.

At the press conference, the CSE reiterated that its demands be met to enable the stock market to flourish.

The stock exchange recommended the government to compel the private companies running with foreign financing to get listed in the stock market.

It also wanted the government to bring state-owned firms, multinationals and advanced products like bonds to the capital market to boost the market's depth.

Turnover, another important indicator of the market, also dropped slightly to Tk 407.72 crore, with 8.17 crore shares and mutual fund units changing hands on the DSE.

Of the traded issues, 107 advanced, 189 declined and 39 remained unchanged on the premier bourse.

United Power Generation dominated the turnover chart with its transaction of 8.23 lakh shares worth Tk 18.82 crore, followed by Monno Ceramics, Berger Paints, Pharma Aids and Beximco.

Among the major sectors, banks fell 1.44 percent, followed by financial institutions at 1.20 percent, pharmaceuticals 0.31 percent and engineering 0.27 percent.

Conversely, food and ailed and the life insurance increased 0.51 percent and 0.38 percent respectively.

Queen South Textiles was the day's best performer with a 10 percent gain, while Purabi General Insurance was the worst loser, shedding 11.97 percent.

Chittagong stocks also fell yesterday with the bourse's benchmark index, CSCX, falling 83.65 points, or 0.85 percent, to finish the day at 9,928.56 points.

Losers beat gainers as 137 declined, 65 advanced and 19 finished unchanged on the port city bourse that traded 58.92 lakh shares and mutual fund units worth Tk 35.71 crore in turnover.