Stock market showed bullish trend on the post-budget trading session on Sunday, 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. Prime share price index at the country’s premier bourse Dhaka Stock Exchange (DSE) crossed 4600 points mark while Chittagong Stock Exchange (CSE) gained also on Sunday, the first trading day of the week.
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. Of the 312 issues traded, 146 gained, 117 declined and 49 remained unchanged. The activities on the market also increased when 16.81 crore shares worth Taka 648 crore changed hands against 12.58 crore shares worth Taka 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 favor of the capital market in the forthcoming budget. Among those proposals, the threshold of tax-free dividend income limit was raised to Taka 25,000 from the existing Taka 20,000 and the existing tax rate of the publicly traded companies was proposed to be slashed down to 25 percent from the prevailing 27.5 percent. The corporate tax for listed banks, insurance companies and financial institutions was also proposed to lower at 40.0 percent from the existing 42.5 percent.
Against the backdrop of the proposed fiscal incentives, investors were upbeat at the beginning of the session, pushing the broader index to the day’s high of 4627.16.
Shares worth Tk 648.33 crore changed hands at the DSE on Sunday as against Tk 499.26 crore on Thursday. The day’s top 10 gainers at the DSE were Pioneer Insurance, Orion Infusion, Standard Insurance, United Airways, Paramount Insurance, ICB AMCL 2nd NRB Mutual Fund, Trust Bank, Reckitt Benckiser, Fas Finance & Investment, and Beximco Pharma. The top five turnover leaders at the DSE were Summit Power, Beximco, Khulna Power Company, Beximco Pharma and Bangladesh Submarine Cable Company.
The CSE key index, CASPI gained 69.98 points to reach 14237.52 at close on Sunday. Of the 243 issues traded, 118 advanced, 91 suffered loss and 34 remained unchanged. The value of the traded issues was Tk 76.15 crore on the day at the CSE.