On the day, the benchmark index DSEX of the Dhaka Stock Exchange (DSE) surged by 59 points to reach 5,310, while the blue-chip index DS30 advanced 11 points to 1,900.
Dhaka stocks turned around today (27 May), breaking a nine-day losing streak, buoyed by hopes that the government will form a coordinating committee to develop the capital market.
On the day, the benchmark index DSEX of the Dhaka Stock Exchange (DSE) surged by 59 points to reach 5,310, while the blue-chip index DS30 advanced 11 points to 1,900.
At the end of the session, the total turnover at the DSE jumped by 57% to reach Tk506 crore, indicating increased market participation compared to the previous session.
Among the traded scrips, 276 advanced, while 84 declined and 34 remained unchanged at the DSE.
Besides, the port city bourse, Chittagong Stock Exchange (CSE), also settled in the green terrain. The selected indices (CSCX) and All Share Price Index (CASPI) added 50.6 and 79.8 points, respectively.
EBL Securities said in its daily market review that the depressed capital market, after nine consecutive sessions of decline, has somewhat rebounded from its free fall as opportunistic investors came up to take positions on low-priced scrips, driven by positive expectations surrounding the media reports on the Prime Minister’s order to form a committee to address the current state of the stock market.
The upbeat vibe persisted for the majority of today’s session as buyers remained dominant to take positions in lucrative issues following the recent corrections, although cautious investors were observant of the sustainability of the market’s momentum, it added.
On Sunday, a meeting was held with the Prime Minister at her office, attended by Salman F Rahman, advisor on private sector and investment to the Prime Minister, State Minister for Commerce Ahsanul Islam Titu, State Minister for Finance Waseqa Ayesha Khan, BIDA (Bangladesh Investment Development Authority) Chairman Lokman Hossain Miah, DSE Director Richard D’Rozario, CSE Chairman Asif Ibrahim, and other business leaders.
A participant at the meeting told The Business Standard on condition of anonymity, “We have requested the Prime Minister not to impose capital gains tax and to increase the tax gap between listed and non-listed firms.”
“Besides, we are seeking policy support for listing multinational companies,” he said.
He further added, “We are requesting the Prime Minister to form a coordinating committee to develop the capital market. The committee will work on listing multinational and government companies and forming supporting rules and regulations to strengthen the market.”
“The committee may be formed with representatives from the finance ministry, commerce ministry, National Board of Revenue, Bangladesh Bank, Bangladesh Securities and Exchange Commission, DSE, CSE, and DSE Brokers Association,” he said.
He said the Prime Minister took note of their demands and assured them that she would give directions to the relevant authorities.
When asked if today’s turnaround was related to the Prime Minister’s meeting, he said, “The market cannot grow based on a meeting alone. It should progress on its own strength.”
Earlier, in nine days till Sunday, the market capitalisation at the DSE plunged by Tk63,646 crore as the broad index continued to decline following each session. Over the sessions, the DSEX lost a total of 446 points.
Stockbrokers and market experts said several negative factors are contributing to this decline. The rising interest rates, fears of taxes on individual investors’ capital gains from listed securities, subdued corporate earnings, and a serious confidence crisis due to the regulator’s intervention are collectively hurting stock bulls, they added.
They further said the upcoming budget may bring some negative news for the stock market, which will likely increase the frustration among investors.
In the last nine days, the number of beneficiary owner (BO) accounts with share balances dropped by around 4,500, while the number of BO accounts with zero share balances rose by around 5,600.
source: https://www.tbsnews.net/economy/stocks/what-hope-drives-market-turn-green-after-9-day-decline-861886
cse dse stock market
