Stocks closed higher for the second session in a row on Wednesday as investors were looking for opportunities to buy stocks for a possible tax rebate at the end of the current fiscal year.
DSEX, the benchmark index of Dhaka Stock Exchange (DSE), rose by 11.17 points over the day’s trading to close at 5411.40, a 0.21 percent gain.
CSCX, the broad index of Chittagong Stock Exchange (CSE), also added a few points with a decrease, though reflecting less activity by investors.
The DSE saw its volume up on the other hand.
“The initial shock from the proposed 15 percent tax on listed companies’ profit retention seems to be easing as the NBR chief is reported to have been in a position to reconsider things. Now investors are busier in analysing sectoral impacts of budget proposals,” said Abdullah Al Mamun, a trader at brokerage firm Al Muntaha Securities.
“Many individuals are trying to park some of their assets into stocks for a possible tax rebate before the fiscal year closes on June 30. That too is creating a demand for both comparatively undervalued and fairly valued trendy stocks,” he added.
On Wednesday morning, the market opened on an uptrend with the index gaining 20 points within the first half an hour of trading. During the rest of the session, index movement remained volatile with periods of corrections followed by periods of recoveries.
Al Mamun interpreted the intraday pattern as a reflection of widely exercised portfolio rebalancing efforts based on investors’ risk appetite.
At DSE turnover on Wednesday stood at Taka 5.54 billion, up by 4.77 percent compared to the previous trading session’s turnover.
Stocks of Life Insurance, IT, Power Generation, Gen. Insurance, and Electric Appliance industry had the highest gains over the trading session. On the other hand, Jute, Textile-Woven, Textile-Accessories, Hospitality, and Textile-Spinning sectors suffered the largest losses.
DSE witnessed 124 of its traded securities gaining market cap, while 174 losing and 53 remaining unchanged.
First Finance, Rupali Life Insurance, Sunlife Insurance, Eastern Insurance, Prime Islami Life Insurance, Eastland Insurance, Progressive Life Insurance and Sonar Bangla Insurance limited topped the gainers’ list.
United Power, Eastern Insurance, JMI Syringe and Medical Devices, Nurani Dyeing, Sonar Bangla Insurance, Rupali Life Insurance, Global Insurance, and Dragon Sweater and Spinning dominated the turnover table of the DSE.
In a profit-taking phase after consecutive gains, Northern Insurance, Global Insurance, Beach Hatchery, Nitol Insurance, Prime Textile and Spinning, Safko Spinning, Newline Clothing and Metro Spinning were the top losers on the day.