Stocks continued to rise for the second consecutive day following a couple of weeks of profit booking after the market regulator’s announcement that it is working on reducing corporate tax for listed companies.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose 65 points, or 1.17 per cent, to 5,647 yesterday.
On February 2, Prof Shibli Rubayat Ul Islam, chairman of the Bangladesh Securities and Exchange Commission (BSEC), said they will ask the government to widen the gap of corporate taxes between listed and non-listed companies in the next budget in order to attract well-performing companies to the market.
Now, the average difference is 7.5 per cent but the stock market regulator wants it to rise up to 15 per cent by reducing the tax for listed companies.
If this happens, then listed companies’ corporate tax would be 17.5 per cent while it is now 25 per cent, said a stock broker.
“It was the main influencer of the last two day’s index rise,” the stock broker added.
The BSEC chief also announced that they would hold a road show in the US, EU, and middle-eastern countries to attract non-resident Bangladeshi and foreign investors to the stock market.
This announcement also impacted the market positively, according to analysts.
Meanwhile, the regulator decided in a recent commission meeting to allow four companies that were previously listed in the over-the-counter market to return to the main market.
The companies are Tamijuddin Textile, Bangladesh Mononspool Paper Manufacturing, Paper Processing and Packaging and Mono Fabrics.
As the companies’ business performance improved, the regulator approved the relisting, according to a press release.
However, turnover, an important indicator of the market, dropped 10.2 per cent to Tk 713 crore yesterday.
Among major sectors, food and allied, life insurance and bank sectors advanced while cement, engineering and travel and leisure sectors faced corrections.
Jute Spinners topped the gainers’ list with a 9.94 per cent rise followed by Prime Insurance, Prime Finance, Sunlife Insurance and British American Tobacco Bangladesh.
Beximco topped the turnover list with shares worth Tk 85 crore changing hands followed by British American Tobacco Bangladesh, Robi Axiata, LankaBangla Finance, and Beximco Pharmaceuticals.
Mir Akhter Hossain Limited shed the most, falling 9.98 per cent followed by Energypac Power Generation, MI Cement, Matin Spinning and Robi Axiata.
At the DSE, 133 securities gained value, 106 declined, and 116 remained unchanged.
The port city bourse also rose yesterday. CASPI, the general index of the Chattogram Stock Exchange, rose 164 points, or 1.02 per cent, to 16,331.
Among 233 traded companies, 101 advanced, 68 fell and 64 remained the same.
