Stock market gains on post-budget trading
BSS
Stock market showed bullish trend on the post-budget trading session yesterday, with advancing indices and rising share prices across the board. Both Dhaka and Chittagong stock exchanges closed higher in the first trading session after the budget proposal, reports BSS.
Rally in the insurance companies drove the market as finance minister proposed corporate tax cut for listed banks, insurance companies and financial institutions. Cement, pharmaceuticals, bank and NBFI also gained on the day.
The broader DSEX index of Dhaka Stock Exchange (DSE) gained 26.27 points to 4617.70 when the blue-chip DS30 and Shariah DSES inched up at 1775.68 and 1121.37 respectively.
The activities on the market also increased when 16.81 crore shares worth Tk 648 crore changed hands against 12.58 crore shares worth Tk 499.25 crore of Thursday, the day when Finance Minister Abul Maal Abdul Muhith placed at the Jatiya Sangsad the national budget for 2015-16 financial year (FY16).
Muhith made a set of proposals in favour of the capital market in the forthcoming budget.
Among those proposals, the threshold of tax-free dividend income limit was raised to Tk 25,000 from the existing Tk 20,000 and the existing tax rate of the publicly traded companies was proposed to be slashed down to 25 per cent from the prevailing 27.5 per cent.
The corporate tax for listed banks, insurance companies and financial institutions was also proposed to lower at 40.0 per cent from the existing 42.5 per cent. Against the backdrop of the proposed fiscal incentives, investors were upbeat at the beginning of the session, pushing the broader index to the days high of 4627.16.
But, the significance could not sustain longer as investors preferred tracking return from the days volatility. Besides, consistent accumulation in last month also helped them realise return from recent days upturn, said IDLC Investment Limited.
At the end of the day, 148 securities closed higher when 111 incurred losses and 53 remained unchanged. The days major gainers were Pioneer Insurance, Orion Infusion, Standard Insurance, United Air and Paramount Insurance.
The sessions major losing issues were Meghna Petroleum, FBFIF, BDCOM Online, ABB1stMF and Takaful Islami Insurance.
Summit Power, Beximco, KPCL, Beximco Pharma and BSCCL were the top turnover leaders.
Chittagong Stock Exchange (CSE) closed the day with major CSEX index gaining 26.79 points to 8633.95. Among traded 243 securities, 118 issues advanced, 91 declined and 34 remained unchanged.
A total of 2.18 crore shares worth Tk 76.15 crore were traded on the day.
