Stocks surge despite turnover dipping to year-low

Stocks on Sunday, a day before the announcement of the FY26 national budget, surged with a 30-point gain on the DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), despite turnover dipping to the lowest level in a year.

With surges in indices, stocks continued upward momentum for the two consecutive sessions till Sunday.

Turnover at the DSE dipped to Tk235.18 crore, down 4.94% from Tk247.42 crore in the previous trading session on Thursday.

However, the lowest turnover for 2024 was Tk235.51 crore on 25 May, according to DSE data.

Meanwhile, other indices of the DSE saw gains, with the DS30, the blue-chip index, surging 6.24 points to 1,017 and the Shariah index (DSES) rising 17.95 points to 1,747.

Most stocks in Sunday's trading session—203 in total—witnessed price increases, while 112 declined and 87 remained unchanged. 

Today, the interim government will mark its first national budget, announcing the budget for the 2025-26 fiscal year. 

The FY26 budget is expected to feature significant tax relief measures aimed at revitalising the capital market, which has been struggling amid weak investor confidence.

According to finance ministry sources, key proposals in the budget may include widening the corporate tax gap between listed and non-listed companies to 7.5% from the existing 5%, reducing advance income tax (AIT) on securities trading from 0.05% to 0.03%, and lowering the corporate tax rate for merchant banks by 10 percentage points to 27.5%.

EBL Securities, in its daily market commentary, said the benchmark index of the capital bourse ended in green for two consecutive sessions as investor sentiment continued to be buoyed by bargain hunting, although trading activities remained sluggish amid waning investor confidence.

"The market witnessed buying interest in certain blue-chip and low-paid up scrips since the beginning of the trading session. Buyers continued to possess the helm of market momentum till the end of the session, leading the benchmark index to witness some recovery following a prolonged losing streak," the commentary reads. 

On the sectoral front, Bank issues exerted the highest by 21.6% in the total turnover, followed by Food by 14.0% and Textile by 10.5%. 

Most of the sectors ended in green, with Engineering by 1.8%, Food by 1.6% and Bank by 1% exhibiting the most positive returns on the bourse yesterday. 

The port city bourse, CSE, also settled on a positive note. The Selective Categories' Index (CSCX) and All Share Price Index (CASPI) advanced by 49.6 and 64.8 points respectively.