Big fall in stock market after the budget proposal

After the proposed budget for the next fiscal year 2024-25, the country’s stock market has seen a big jump. In addition to the decrease in the share and unit prices of most of the companies, the main stock market Dhaka Stock Exchange (DSE) and the other stock market Chittagong Stock Exchange (CSE) have seen a big fall in all the price indices. At the same time, the transaction in DSE has decreased to Rs 300 crore.

Stock market people say that there is no good news for the stock market in the proposed budget. Instead, the budget has been anti-stock market. The budget proposal imposes tax on capital gains of Rs 50 lakh for individual investors. Again the corporate tax rate for non-listed companies has been reduced. This has further reduced the tax rate gap between listed and non-listed companies. As a result, after the budget proposal, there has been a big fall in the stock market.

Sunday (June 9) was the first working day after the proposed budget for the new financial year. On this day, trading in the stock market started with the decrease in the prices of shares and units of most companies. This negative trend seen at the beginning of the transaction continues till the end.

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Even at the end of the transaction, the level of decline increases. At the end of the day’s trading, the shares and units of only 33 companies have entered the list of price increase in DSE. On the contrary, the price of 340 companies has decreased. And the price of 19 remains unchanged.

As a result, DSE’s main index DSEX fell by 65 points to 5,171 points. Among the other two indices, the DSE Shariah index fell by 15 points to 1,120 points compared to the previous day. And the DSE-30 index consisting of 30 well-chosen companies has fallen by 22 points to 1,835 points compared to the previous day.

Tk 357 crore 90 lakhs were traded in the market throughout the day. 542 crores 60 lakhs were traded on the previous working day. Accordingly, the transaction decreased by 184 crore 70 lakh taka.

In this regard, a member of DSE said that before the budget proposal, there were rumors that capital gains tax may be imposed on individual investors. In view of which the Dhaka Stock Exchange and the share market stakeholders demanded not to impose capital gain tax this time. But ignoring the demands of the stock market stakeholders, tax has been imposed on capital gains.

He said, in the case of individual investors, if the capital gain is above 50 lakh rupees, they will have to pay 15 percent tax on it. The number of investors who have capital gains of Rs 50 lakhs is less, but such investors have a large impact on the market. As large investors become inactive in the market, trading slows down and prices fall. Maybe that’s what’s happening now.

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Shares of Lovelo Ice Cream were the most traded shares in the dry market. 15 crore 91 lakh shares of the company have been traded. Shares of Fortune Suze, ranked second, traded at Tk 15 crore 14 lakhs. Asiatic Laboratories is in the third position with a share transaction of Tk 13 crore 8 lakh.

Besides, the list of top 10 companies in terms of transactions on DSE includes Unilever Consumer Care, Central Pharmaceuticals, E-Generation, Square Pharmaceuticals, Rupali Life Insurance, Orion Pharma and British American Tobacco.

Another stock market Chittagong Stock Exchange (CSE) overall price index CASPI decreased by 106 points. 34 out of 217 firms participating in the market rose in price. On the contrary, the prices of 151 have decreased and the prices of 32 have remained unchanged. 107 Crore 82 Lakh Tk.