Stocks rebound on budget expectations

The country’s capital market rebounded last week amid wide-ranging expectations among the investors that the budget going to be passed today would continue the market trend. The budget for 2019-20 fiscal is scheduled to be passed today at the Jatiya Sangsad, announcing many market supportive steps.
Expecting a vibrant capital market, market analysts said the government’s good initiatives will create a favourable environment for building a strong, vibrant and well-functioning capital market.

“Besides, tax review expectations coupled with June-closing earnings and dividend declarations encouraged investors to inject fresh funds in the market,” they said. They further said the possibility of revising the proposed tax on listed companies’ reserve and retained earnings by the stakeholders made investors confident.

The DSEX, the prime index of the Dhaka Stock Exchange (DSE) went up by 34.42 points, or 0.64 percent, at 5,430 during last week comparing to the previous week. The DS30 index, comprising blue chips, also increased by 30.52 points to close at 1,924.91, while the DSE Shariah Index rose by 12.55 points to settle at 1,245.83.

The market capitalisation of the DSE increased to Tk 4,004.58 billion on Thursday, which was 0.65 percent higher against Tk 3,978.77 billion on the first working day of the week. The daily turnover decreased by 18.45 percent to Tk 4.24 billion over the previous week's average of Tk 5.19 billion. Out of 354 issues traded, 159 ended higher, 172 closed lower and 23 remained unchanged on the DSE floor.

The United Power dominated and became the top on the weekly turnover chart with 2,777,453 shares worth Tk 1.04 billion changing hands. It was followed by JMI Syringes and Medical Devices Ltd, Square Pharmaceuticals Ltd, Bangladesh Shipping Corporation, Fortune Shoes and Genex Infosys Limited. The Prime Finance First Mutual Fund was the week’s best performer, posting a gain of 23.23 percent while the IPDC Finance Limited, the week’s worst loser, falling 18.44 percent.

Meanwhile, the Chattogram Stock Exchange (CSE) also saw positive trend during the last week with its selective category index (CSCX) gaining nearly 0.74 percent to close at 10,086.14 points. On the other hand, all Share Price Index of the CSE was higher by almost 0.72 percent to 16,642.59 points on Thursday.