The Dhaka Stock Exchange (DSE) experienced a modest recovery on Tuesday, with the DSEX index rising by 10.32 points to close at 5,347.
However, turnover dropped to Tk 467 crore, marking the first time it has fallen below Tk500 crore since July 2, despite a peak of over Tk1,500 crore earlier in the period.
Market participants attributed the decline in turnover and the recent selloff to several factors, including profit booking, concerns over tax scrutiny of undisclosed gains from wealthy investors, and uncertainty surrounding upcoming corporate earnings.
After seeing over 20% gains in the DSEX over the past three months, investors began taking profits earlier this month.
Sentiment went negative following National Board of Revenue (NBR) letter to the securities regulator on September 7, requesting information on accounts with annual capital gains of Tk 50 lakh or more.
This triggered fears that wealthy investors might face increased scrutiny.
Ahmed Rashid Lali, former president of the DSE Brokers Association, commented, “There has been a natural tendency to take profits in the market over the past few days, but the sudden NBR letter the Bangladesh Securities and Exchange Commission forwarded to the stock exchanges and then withdrawn on the same day caused a disruption.”
On Tuesday, turnover stood at Tk 467 crore, down from Tk 544 crore in the previous session.
A total of 395 scrips were traded, with 233 seeing price increases, 101 experiencing declines, and 61 remaining unchanged.
Sector performance showed mixed results. The pharmaceutical sector led turnover, accounting for 14% of total transactions, followed by the textile sector’s 13.9% and the banking sector’s 10.4% turnover contributions.
Positive returns were observed in sectors such as paper, ceramics, and IT, with increases of 3.9%, 2.7%, and 2.3%, respectively.
However, services, banking, and food sectors faced minor corrections, with decreases of 0.5%, 0.5%, and 0.1%, respectively.
While the DSEX saw a slight increase, the Chittagong Stock Exchange (CSE) closed in the red. The Selective Categories Index and the All Share Price Index both saw declines of 30 and 53 points, respectively.
