Stocks surge on fiscal support30 June 2014
Shafique Khan, President of Ganosashthya Credit Co-operative Society Ltd, presiding over the 22nd Annual General Meeting of the Society at Ganosashthya Nagar Milonayaton in the city on Saturday. The AGM approves 13percent cash dividend for its shareholde
BSS, Dhaka :
DSEX, the benchmark price index of the country's prime bourse, surged after the finance minister assured that the tax exemption on capital gains for individual investors would continue.
Finance Minister AMA Muhith on Saturday told Jatiya Sangsad that the government would allow individual investors tax exemption on capital gains to help encourage them invest more in the capital market.
The minister also said that he would consider offering 10.0 percent tax rebate for the listed companies who recommend dividend at the rate of 30.0 percent or above.
Besides, he said the government would consider introducing pension fund and a bond market next year to strengthen further the country's capital market.
While placing the national budget for 2014-15 financial year (FY15), the finance minister proposed 3.0 percent tax on gains from investment in stocks above Taka 10 lakh to 20 lakh and 5.0 percent for gains above Taka 20 lakh.
Trading at the Dhaka Stock Exchange (DSE) began on Sunday with a strong positive mode on the hope that the fiscal support would drive stock market towards positive direction. The upbeat continued till the close of the market when the broad-based index ended 1.76 percent or 77.64 points higher at 4487.07.
The two selective indices also gained over 1.0 percent with issues advancing across the board. The blue-chip DS30 added 1.3 percent or 22.32 points to close at 1638.90 when the Shariah DSES rose by 1.08 percent or 10.95 points to end at 1017.17.
All major sectors except telecommunication performed robust with issues from non-banking financial institute and miscellaneous sectors gaining most. Companies from aviation, telecommunication, pharmaceuticals and miscellaneous sectors successfully maintained top turnover positions for the last few sessions with significant gains.
Out of 296 issues traded, 236 gained, 44 incurred loss and 16 remained unchanged with trade volume increased to 10.39 crore shares and the value to Taka 390.12 crore from Thursday's 7.95 crore shares worth Taka 302.78 crore.
The market also showed a positive sentiment last week, but most of the investors seemed cautious and kept an eye on the market movement ahead of the budget approval.
"Withdrawal of proposed capital gain tax stimulated investors very positively. Besides, tax rebate seekers' investment continued flowing to the market, adding a boost to the market activities," said IDCL Finance daily market update.