Stocks gain despite lockdown worries

Indices of both stock exchanges jumped on Wednesday, the last day of the 2020-21 fiscal year, despite concerns over the strict Covid-19 lockdown that came into force today.

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), ended with a considerable rise of 108 points or 1.79%, the highest single-day rise in the past four months. 

The index closed at 6,150 points at the end of the session.

EBL Securities said in its daily market review that investors positively reacted to the government's decision to allow the whitening of black money through capital market investments.

On 29 June, the government allowed the whitening of undisclosed money by investing in stocks and other listed securities for the second consecutive fiscal year.

In the 2020-21 fiscal year, the government allowed undisclosed money in the stock market on condition of paying a flat 10% tax on the total amount while regular income tax goes as high as 25%.

This time, the government made the whitening tax a flat 25% on the total and also imposed a new 5% penalty on the total tax amount.

"We appreciate the decision to continue the option to whiten black money, but the new conditions will not be effective in drawing black money into the stock market," said Rakibur Rahman, a veteran stockbroker and a member of the DSE board of directors.

The DSE turnover also increased by 23% to Tk1,407.89 crore on Wednesday compared to the previous trading day.

At the end of Wednesday's session, 307 companies' share prices advanced, 41 declined and 23 remained unchanged on the DSE.

Square Pharmaceuticals grabbed the top position in the turnover chart with trade amounting to Tk87.54 crore, followed by Beximco Limited and Keya Cosmetics.

On the top 10 gainers' list on the DSE, there were nine insurance companies. Northern Insurance led the chart with a 10% price hike.

Monno Fabrics performed the worst as investors sold it to book capital gain.

On the sectoral front, pharmaceuticals contributed 15.71% of the total turnover on the DSE, followed by textile (13.88%) and general insurance (11.92%).

Port city bourse Chittagong Stock Exchange gained 321 points to close at 17,795.

Trading to continue amid strict lockdown 

The securities regulator has decided to keep share trading open amid the strict countrywide lockdown.

As per its directive, shares will be traded for three hours from 10am to 1pm. 

The new schedule will be in effect from Monday to Thursday. 

The market is closed today and on 4 July as banks are closed on these days.