Stocks decline amid inflationary pressures from tax hikes
The day’s turnover increased slightly to Tk371 crore
Dhaka stocks plummeted today (12 January) as businesses voiced concerns over inflationary pressures from recent tax hikes.
The benchmark index, DSEX, of the Dhaka Stock Exchange (DSE), dropped by 0.73% to 5,156 points, while the blue-chip index, DS30, slipped by 0.89% to 1,907 points.
Market performance was mixed, with 69 stocks advancing, 282 declining, and 48 remaining unchanged. Investor participation remained subdued, with the daily average turnover at the DSE stagnating at Tk300 crore.
EBL Securities, in its daily market review, stated that the capital bourse began the week on a dismal note, as investor anxiety over potential inflationary shocks from recent tax hikes, along with adverse reactions to the latest media report on stricter loan classification rules in the banking sector for the next quarter, affected the already depressed market momentum.
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The market witnessed predominant sell pressure throughout the session, leading to price corrections in most stocks, with significant contributions from the banking sector to the index's decline.
Dhaka Chamber of Commerce and Industries (DCCI) President Taskeen Ahmed described the interim government's decision to increase VAT and supplementary duty (SD) on more than 100 products as "suicidal," warning it would negatively impact the people.
"The entire cost of this VAT and SD increase will fall on the people, hampering national and international investments and trade," he said at a press briefing in Motijheel.
Most sectors displayed dismal returns, with cement, services, and IT showing the most significant corrections. However, miscellaneous, ceramics, and telecom stocks posted some gains on the bourse.
Khan Brothers PP Woven Bag led the gainers' list, with its share price surging by 9.99%, followed by Monno Ceramic, Union Capital, and Khulna Printing and Packaging.
Midland Bank was the top loser, with its share price dropping by 9.47%, followed by Fine Foods, Shurwid Industries, Bay Leasing, and Western Marine Shipyard.
Investors showed the highest activity in the pharmaceutical sector, which accounted for 15.5% of the DSE's total turnover, followed by the banking sector at 13.9% and the engineering sector at 10.4%.
Fine Foods was the top-traded stock in terms of value, with shares worth Tk19.39 crore traded, followed by Orion Infusion, Midland Bank, and Aftab Auto.
