Dhaka stocks see slight rise
Dhaka stocks ended slightly positive yesterday after a week of negative performance, riding on the formal entry of a Chinese consortium to the board of the country's premier bourse.
The DSEX, the benchmark index of the premier bourse, went up 9.43 points or 0.16 percent before finishing the day at 5,562.23.
Turnover increased 13.22 percent to Tk 811.75 crore yesterday, with 18.27 crore shares and mutual fund units changing hands on the DSE.
The broad index, DSEX, advanced by only 9.4 points and closed at 5,562. But turnover increased by 13.2 percent to reach Tk 811 crore.
“Yet, the market has not become vibrant to the expected level,” said a stock broker of Dhaka Stock Exchange (DSE).
The Chinese consortium, comprising Shenzhen Stock Exchange and Shanghai Stock Exchange, has recently become a strategic partner of the DSE by acquiring 25 percent stake at a cost of Tk 947 crore, which has already been posted to the DSE account.
According to the consortium, it has 11,000 institutional investors and many of them may get interested to invest in the Dhaka stock market.
The government is also taking some plans to make the market more investor-friendly, stakeholders said.
The finance ministry is thinking of raising the timeframe of close end mutual funds which have to be liquidated within 10 years. If there is any increase in the liquidation timeframe, the market would not face any sales pressure for at least 5 years.
Tension over the upcoming parliamentary election, inactiveness of the Investment Corporation of Bangladesh (ICB) and stock brokers being dissatisfied with the higher gain tax on share sales at the DSE are bothering the market, said a CEO of a brokerage firm seeking anonymity.
The Anti-Corruption Commission (ACC) has recently arrested three persons, including a serving and a former official of ICB, in connection with a misappropriation case. Moreover, it has filed 12 more cases against 15 ICB officials over the alleged misappropriation of about Tk 62 crore of the ICB.
The CEO said ICB officials were inactive as they were both angered and in apprehension of their colleagues' fates. Inactiveness of a big player like ICB alone has affected the market badly, he added.
Some other brokers are unhappy as they have to pay a 15 percent gain tax on the money they get from selling shares.
Capital gain tax is only 5 percent for listed companies and, as the DSE is not yet listed, shareholders will have to pay a 15 percent gain tax.
Stock brokers say they were bound to sell their shares before they got listed as per the demutualisation act 2013.
So they are bargaining to get the same opportunities as a listed company, as the DSE will have to be listed very soon as well.
Of the traded issues, 156 advanced, 131 declined and 49 closed unchanged on the premier bourse.
Khulna Power dominated the turnover chart with 65.69 lakh shares worth Tk 60.14 crore changing hands, followed by United Power Generation, The Peninsula Chittagong, Unique Hotel and Aman Feed. Oimex Electrode was the day's best performer with a 9.93 percent gain followed by The Peninsula Chittagong, Eastern Housing, The IBN SINA Pharmaceuticals.
SEML Lecture Equity Management Fund was the worst loser, shedding by 9.21 percent, followed by Provati Insurance, CAPM BDBL Mutual Fund and Janata Insurance.
Chittagong stocks soared yesterday with the bourse's benchmark index, CSCX, increasing 47.76 points or 0.46 percent to finish the day at 10,386.00.
Losers beat gainers as 111 advanced, 95 declined and 41 finished unchanged on the Chittagong Stock Exchange.
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