This downward spiral has intensified as investors hurriedly sell off their holdings in anticipation of a potential 15% income tax on capital gains in the upcoming budget, which are currently tax-free
The relentless bearish trend on the country’s premier stock exchange continued amid lower market participation, as the benchmark index DSEX fell by 18 points today, settling at 5,234, as cautious investors sold off their holdings.
The turnover fell by 6.67% to Tk349 crore from Tk374 crore compared to the previous session.
This downward spiral has intensified as investors hurriedly sell off their holdings in anticipation of a potential 15% income tax on capital gains in the upcoming budget, which are currently tax-free.
Any new tax would burden capital investors, especially given the market’s critical condition due to factors like the pandemic, the Russia-Ukraine war, and the global economic crisis, deem the market stakeholders.
Meanwhile, the Blue-chip index DS30 dropped by 8 points to 1,867 points, while the Shariah-compliant stocks’ index DSES was down by 6 points to 1,137 points. Among the traded scrips, 124 advanced, 209 declined, and 48 remained unchanged during the trading session.
Beach Hatchery had the highest trading volume, followed by Asiatic Laboratories, Alif Industries, Orion Pharma, eGeneration, and Orion Infusion.
Global Heavy Chemicals was the top gainer, followed by Central Pharmaceuticals, Meghna Cement Mills, Trust Islami Life Insurance, and Rupali Life Insurance Company.
On the other hand, Hami Industries topped the DSE’s list of losers, followed by Khan Brothers PP Woven Bag Industries, Kohinoor Chemicals Company (Bangladesh), and Khulna Printing & Packaging.
EBL Securities wrote in its daily market commentary that the downbeat vibe in the country’s capital market continues amid lower market participation as bears firmed their control across the trading floor since investors are being cautious of the market’s trend owing to uncertainties leading up to the national budget declaration.
According to the commentary, the market remained dominated by sellers throughout the session owing to uncertainties leading up to the national budget declaration, allowing the bears to firm their control across the trading floor.
Despite showing slight resilience with the benchmark index remaining afloat till mid-session, sellers regained their control, which wiped out all the early gains and pushed the core index to dip into negative territory again, the brokerage house said in its commentary.
On the sectoral front, the pharma sector’s 20.7% issues exerted the highest turnover, followed by textiles at 15.0% and food at 12.7%.
Most sectors displayed dismal returns, with jute at 1.5%, mutual Funds at 0.8%, and general insurance at 0.7% exerting the most corrections on the bourse yesterday. However, life insurance at 1.4%, paper at 1.2%, and telecom at 0.3% exhibited marginal positive returns.
The port city bourse, CSE, also settled in the red. The selected indices (CSCX) and All Share Price Index (CASPI) declined by 33.8 and 52.5 points, respectively.
Read More: Markets slide as indices fall amid selling pressure