Stocks jumped yesterday, as investors cheered up with the removal of proposed capital gain tax from the finance bill passed in parliament on Saturday.
The benchmark DSEX ended at 4,487 with a gain of over 77 points or 1.8%. This was the steepest daily gain in the last six and half months. The rally also broke its modest rally for the fourth straight session.
The Shariah index DSES rose 11 points or 1% to 1,017. The comprising blue chips DS30 was up 22 points or 1.4% to close at 1,639.
Chittagong Stock Exchange (CSE) Selective Categories Index, CSCX, ended at 8,541 with a rise of 140 points.
Analysts said the government’s decision to withdraw from the capital gain tax which was earlier proposed in the FY15 budget definitely played a staggering role leaving a positive mark on the market.
“Investors gladly welcomed the news, and their positive sentiment was clearly reflected in the stocks, setting the market in a vibrant mode,” said one of them.
Trading activities also take a lift as the total turnover at DSE stood at Tk390 crore, which was 29 % higher over the previous session.
IDLC Investments said market started the week on a positive note following the government’s decision to drop capital gain tax for individual investors.
All the sectors ended in green except telecommunication as the largest sector in the market edged lower.
Non-banking financial institutions and food posted gains of more than 4% and 3% respectively. They were followed by banks which closed over 2% higher, power 1.6% and pharmaceuticals 1.3%.
Zenith Investments said leaving a bundle of opportunities for capital market, especially for investors, the Finance Bill 2014 was passed on Saturday.
“Withdrawal of proposed capital gain tax stimulated investors very positively. Besides, tax rebate seekers’ investment continued flowing to the market, adding an additional boost to market activities.”
Out of 296 issues traded, 236 advanced, 44 declined and 16 remained unchanged.
Lafarge Surma Cement topped the liquidity chart with turnover of Tk34.5 crore. It was followed by Beximco Ltd, Grameenphone, United Airways, Square Pharmaceuticals, Bangladesh Submarine Cable Company Ltd and Eastern Housing Ltd.