Stocks continue to sulk over capital gains tax

Stocks ended flat yesterday, with turnover, one of the most important indicators of the market, dropping to a four-week low as investors shied away from placing fresh bids.
At the close of trading, turnover stood at Tk 223 crore, down 16.31 percent from the previous day.
DSEX, the prime index of Dhaka Stock Exchange, ended at 4,322.26 points, shedding 6.14 points or 0.14 percent.
The volatility of the market started after the government proposed capital gains tax on share sales in the upcoming fiscal year. The market lost more than 150 points since the announcement on June 5.
DSES, the shariah index of the Dhaka bourse, lost 4.17 points or 0.42 percent from the previous day to close at 988.79 points.
“The market is still under selling pressure. Investors are opting to watch from the sidelines whether the government changes the detrimental decisions it has taken in the proposed budget for fiscal 2014-15,” LankaBangla Securities said in its daily market analysis.
The stockbroker said the situation would continue until the budget approval next week.
“The opening session absorbed another hit, with different phases of volatility,” IDLC Investments said.
The market was upheld with the support of some specific issues such as Lafarge Surma Cement, Square Pharma and Bangladesh Submarine Cable Company (BSCCL), the merchant bank said.
Lafarge Surma Cement was the most traded stock with its transaction of 43 lakh shares worth Tk 34 crore, followed by Grameenphone, Square Pharmaceuticals and BSCCL.
Of the 292 issues that traded on the DSE floor, 140 advanced, 114 declined and 38 remained unchanged.
Banks and foods were the only gainers among the major sectors, putting on 0.67 percent and 0.28 percent respectively.
Telecoms posted the highest loss, of 1.02 percent, followed by pharma 0.08 percent, non-bank financial institutions 0.35 percent and power 0.11 percent.
Beximco yesterday declared 15 percent stock dividends, while Beximco Pharma declared 10 percent cash and 5 percent stock dividends for 2013.
Monno Stafflers was the day's highest gainer, posting a rise of 8.69 percent, while Asia Insurance was the biggest loser, slumping by 13.63 percent.