Tuesday, 16 Jul, 2024
Tuesday, 16 Jul, 2024
The Daily Post

DBA urges proposals amid huge loss in market

Al Ehsan

DBA urges proposals amid huge loss in market

Dhaka Stock Exchange Brokers Association of Bangladesh (DBA) proposed some demand to include in the new budget at motijeel in their office, whereas capital market saw a huge decline yesterday.

DBA president Saiful Islam described the market situation and compare the newly imposed tax to others countries and proposed some recommendation to increase the investor both domestic and foreign arena.

He said, you see we have been in struggling from 10 years. We are failing to attract the domestic investors rather than foreign investors. Market fails regularly without any legal issue. In the budget session, a proposal to impose tax on capital gain after the amount will be Tk 50 lakh, we demand to withdrawal this proposal for one year. In our country, 0.05 percentage tax on the sale and buy for every brokerage house. Beside in India, they enjoy 0.02% tax on this issue. So, we demand it lower than 0.02%. We need clarification in the law of capital loss adjustment there is a provision to minimize the loss until 6 years. We demand this law clarification and extend this merit to 7 years.

President of DBA said, honorable Prime Minister Sheikh Hasina directive to add State-Owned Enterprise (SOE)’s in the capital market. But after one decade, the process of SOE adding, not improved. We recommend review the corporate tax rate on enlisted and unlisted firm. We had 33 lakhs investors in our market, now it is only 17 lakhs. It is only 1% above the whole population who has BO accounts. Otherwise, 28% people engaged in banking sector and 67% people engaged in MFS.  So it is clear that we are not able to keep our investors. So we recommended 3 years tax free for new BO account and tax free invest limit should be 10 lakhs. There should be zero tax provision for student, autistic and old age citizen in the capital market. Government should permission the tax free provision on margin loss.

Answering some query he said, we have 250 members in our organization. Lack of good items, investors faces loss. There is no good company in the last 15 years. New generation loss interest on share market for the this consecutive loss. As an example, when Titan Watch Company took part in India, they take Rs 100 per share in the market that’s turns to Rs 5 lakhs. When SOE come in the capital market the situation will cure. We should bring new companies, increase the equity, transparency and accountability. Transparency and accountability are the main problem in capital market now. Without ensure transparency we can’t expect the gain.

Answering a different query he said, some DSE members are take part in share business, we demand to action about them. Independent members should not involve any kind of involvement in share market. It is time to work for reform the demutualization, because it is not workable now.

Like the last few working days, after the budget session, yesterday there was a big price drop in the stock market. In the main stock market Dhaka Stock Exchange (DSE) and other stock market Chittagong Stock Exchange (CSE), the share and unit prices of most of the companies have decreased along with all the price indices. DSE's main index fell to its lowest level in 42 months or three-and-a-half years.

In December 9, 2020, the DSE capital market touched 5069.88341 point that was lower than this working day.

According to the market review, trading in the stock market started yesterday with the reduction of the share and unit prices of most of the companies. This causes the index to become negative at the beginning of trading. But sometimes the index goes up for some time. However, it did not last for long, rather the decline level increased towards the end of the session.

At the end of the day's trading, the shares and units of only 51 companies have entered the list of price increase in DSE. On the contrary, the prices of 308 companies have decline. And the price of 35 remains unchanged.

As a result, DSE's main index DSEX fell by 35 points to 5,700 points.

Among the other two indices, the DSE Shariah index fell by 9 points to 1,093 points compared to the previous day. And the DSE-30 index consisting of 30 well-chosen companies has fallen by eight points to 1,803 points compared to the previous day.

While the index fell to a 42-month low, volume on the DSE rose slightly. Tk 431 crore 64 lakh was traded in the market throughout the day. Tk 318 crore 78 lakh was traded on the previous working day. Accordingly, the transaction has increased by Tk 112 crore 86 lakh.

Beacon Pharma shares were traded the most in terms of Tk 72 crore 35 lakh shares of the company have been traded. Shares of Asiatic Laboratories in the second place were traded at Tk 18.29 crore. Sea Pearl Beach Resort is in the third place with a share transaction of Tk 15 crore 25 lakh.

Besides, the list of top 10 companies in terms of transactions on DSE includes - Lavello Ice Cream, British American Tobacco, Square Pharmaceuticals, BRAC Bank, Unilever Consumer Care, Central Pharmaceuticals and Orion Pharma.

Another stock market Chittagong Stock Exchange (CSE) overall price index CASPI decreased by 107 points. 25 out of 211 firms participating in the market rose in price. In contrast, 163 prices fell and 23 remained unchanged.