The draft budget for the 2022-23 fiscal year has no good news for the capital market except for a corporate tax cut for listed companies, affected people said.
They added that because the budget did not reflect their expectations, disappointed investors were in a selling frenzy on Sunday – the first trading session after the budget was unveiled on Thursday, causing indexes on both exchanges to plummet.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell 48.8 points to 6,431 at the end of Sunday’s trading session.
In addition, the total turnover on the first exchange also decreased by 16.1% and stood at Tk 636.40 crore compared to Tk 758.26 crore in the previous session amid weak conditions. investor participation.
Of the 386 issues traded, 53 advanced, 306 declined and 27 remained unchanged.
EBL Securities said in its daily market commentary that shares in Dhaka fell as investors sold stocks as fears of tighter financial conditions across the globe triggered significant stock volatility in the country.
He also said the market stabilized after the unveiling of the record national budget of Tk 6.78 billion, with investors cautiously analyzing its potential impacts on the capital market before making new investments.
Meanwhile, people linked to the market expressed hope that local businesses could do well in the future, as the government in the FY23 budget offered tax cuts for local businesses as well as import duty increases to protect local industries.
According to EBL, on the sectoral front, textile issues monopolized 11.8% of the DSE’s turnover on Sunday, followed by pharmaceuticals and chemicals 10.7% and miscellaneous 10.5%.
Meghna Insurance Company was the day’s top gainer, posting a gain of 9.92%, followed by Monno Fabrics and Shinepukur Ceramics.
In contrast, Summit Alliance Port was the worst loser, losing 2%, followed by Green Delta Insurance and Nitol Insurance Company.
The port city’s Chittagong Stock Exchange (CSE) has also settled into red territory. The selected indices, CSCX and All Share Price Index (CASPI) fell 81.1 and 134.4 points respectively on Sunday compared to the previous session.
