Stocks continue to decline as cautious trading persists

The Dhaka Stock Exchange (DSE) saw a significant increase in average daily turnover, jumping by 16 percent compared to the previous week. The total turnover for the week reached Tk 22.58 billion, up from Tk 19.51 billion the week before.

Investors were cautious throughout the week as they awaited the national budget announcement on Thursday. The key index, DSEX, lost 14.64 points or 0.28 percent to settle at 5,237 for the week. Despite the marginal losses, the stock market has been facing challenges due to lingering macroeconomic issues.

Finance Minister Abul Hassan Mahmood Ali presented a record Tk 7.97 trillion national budget for FY25 on Thursday. The budget proposed a capital gain tax for individual investors with capital gains exceeding Tk 5 million. Additionally, undisclosed money was allowed into securities, apartments, and land, narrowing the tax gap between listed and non-listed companies.

Stock market operators and experts had mixed reactions to the budget measures. Some hailed the proposed measures, stating that investors would benefit, while others expressed concerns that good companies may be discouraged from going public.

The market is now analyzing the budget, and investors are waiting to see how the market will react. The increase in average daily turnover on the DSE indicates a positive response from investors, with three sectors – pharmaceuticals, food, and textiles – accounting for almost 45 percent of the weekly turnover.

Overall, the budget announcements have had a significant impact on the stock market, and investors will be closely monitoring the market in the coming days.