Stocks
Proposal to be Offered to Withdraw Double Taxation on Dividends
The Planning Minister, M.A. Mannan, has stated that in order to curb the dependency on interest income in the stock market, the government is considering adjustments in the corporate tax rate for listed and non-listed companies and making all types of bond markets completely tax-free. These proposals are aimed at budgetary considerations to increase revenue and ensure a more robust and free bond market.
On Sunday, June 4th, a discussion titled “Discussion on Budget: Perspective of the Stock Market” was held, organized jointly by the Bangladesh Merchant Bankers Association (BMBA) and the Capital Market Journalist Forum (CMJF). The event saw the presence of esteemed individuals such as Professor Dr. Hafiz Muhammad Hasan Babu, Chairman of the Dhaka Stock Exchange (DSE), Asif Ibrahim, Chairman of the Chittagong Stock Exchange (CSE), Richard De Rosario, President of the DSE Brokers’ Association (DBA), and Md. Sayadur Rahman, President of the BMBA.
During the event, the Planning Minister emphasized that the country is on the path of economic development. Although the stock market might not have received significant attention in our country yet, its importance is gradually increasing.
He stated that it is appropriate for multinational companies to be listed on the stock market. I had expressed this view when I was the Finance Minister. However, I wonder why these companies have not been listed.
Regarding advance income tax, he mentioned that it should be abolished, just like military laws. It is advisable to repeal this law.
President of the Bangladesh Merchant Bankers’ Association (BMBA), Mr. Sayadur Rahman, stated that the country’s economy is progressing. However, he emphasized that economic stability cannot solely rely on banking. The stock market should play a crucial role in long-term investment.
He proposed that both listed and non-listed companies should be subject to a 15% tax on profits. The dual tax system needs to be abolished, considering the tax as a final charge on dividend income sources. By removing the dual tax system, it will encourage long-term investment by taxing only the company’s income.
Richard De Rosario, President of the Dhaka Stock Exchange Brokers’ Association (DBA), expressed the need to focus on small-scale companies in the country and foster new entrepreneurs. In this regard, the stock market can play a vital role. The absence of significant measures related to the stock market in the budget is deeply disappointing.
In his claim to increase the tax on profits, he stated that listed companies have responsibilities in various aspects. They must be accountable in stock exchanges, the Bangladesh Securities and Exchange Commission (BSEC), and many other areas. Being listed improves transparency. As a result, many companies that are currently reluctant to be listed will eventually choose to do so, benefiting the government.
Asif Ibrahim, Chairman of the Chittagong Stock Exchange (CSE), stated that a significant portion of the country’s industrial investment has been channeled through banks so far. However, it would have been more appropriate if it had been done through the stock market. Unless a space for long-term investment is created through the stock market, the country’s economy can never achieve stability. Additionally, the importance of the bond market needs to be enhanced for long-term investments. In this regard, all types of bonds should be made tax-free, similar to zero-coupon bonds.
Dr. Hafiz M. Hasan Babu, Chairman of the BSEC, stated that in major economies around the world, the stock market is considered a key driving force for the economy. However, in our country, it is being neglected. There is negligence towards the stock market. I firmly believe that neglecting the stock market will not be possible, and it will continue to exist. Because it involves the people at the grassroots level of the country, and it holds the future of the economy.
CMJF President Ziaur Rahman presided over the program moderated by CMJF General Secretary Abu Ali.
Weekly Dhaka Stock Exchange, DSE, Dhaka Bourse has seen a massive drop in Indices & Turnover on the other hand Market Capitlization hikes throughout the whole week. This information was disclosed in the weekly market review from the DSE.
According to sources, (4 working days) the turnover of DSE lost by Tk 261 crore 38 lakh (April 15 – April 18). At the same time, the market capitalization has increased by 21 thousand 590 crore taka.
The benchmark index ‘DSEX’ lost by 177 points or 3.03 percent, in the outgoing week. At the end of the week, the index stands at 5,686 points. The Shariah-based index ‘DSES’ added 35.74 points or 2.79 percent and therefore the index stands at 1,246 points. The blue-chip index ‘DS30’ increased by 47.81 points or 2.35 percent, hence the index stands at 1,984 points.
Shares and units worth 1 thousand 912 crore 81 lakh taka were traded in Dhaka Stock Exchange. At the end of the week, the market capitalization stood at 7 lakh 63 thousand 251 crore 62 lakh taka.
Shares and units of 411 companies were traded on Bourse during the week. Of these, 21 shares were unchanged, 285 companies declined, and 89 companies advanced.
Asiatic Laboraitories Limited has ranked at the top of weekly trading on DSE. The Company records an average turnover of 23 crore 46 lakh taka.
Asiatic Laboratories Limited ranked at the top of weekly gainers on DSE. The share has risen 18.14 percent to its highest price.
National Bank Limited has ranked at the top of weekly losers on DSE. The share has dropped 14.29 percent lowest in the last week.
Dhaka Stock Exchange DSE, Bourse on the last working day of the week, April 18th, ended with a drop in Indices and hike in Turnover from the previous working session. This information is known from DSE sources.
522 crore 51 lakh taka shares were traded on this day. 39 crore 97 lakh more tradings were done in DSE today compared to the previous workday, 17th April , Shares worth Tk 482 crores 53 lakh shares were traded last time, Wednesday.
The benchmark DSEX lost 77.08 points or 5,686 The Shariah-based index DSES dropped 15.85 points or 1,246, and the blue-chip index DS30 decreased by 22.77 points or 1,984.
Of the issues traded, 29 advanced, 342 declined and 24 remained unchanged.
Asiatic laboratories Limited ranked top gainer on DSE, the share price increased by Tk 4.60 paisa or 9.96 percent. On this day, the share was last traded at Tk 50.80 paisa.
Far East Finance & Investment Limited ranked top loser on the DSE, the share price dropped by Tk 0.30 paisa or 6.97 percent. On this day, the share was last traded at Tk 4.00 paisa.
DSE topped on trade is Asiatic Laboratories Limited 39 crore 22 lakh takas of company shares have been traded.
A total of 40 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 47 lakh 25 thousand 651 shares of the companies were traded. The financial value of which is 17 crore 46 lakh taka
One of the listed companies, Agni Systems limited discloses its financial reports for the third quarter, (January – March 24).
The company’s earnings per share (EPS) was Tk 0.32 paisa in Q3 of the current financial year (January – March 24). EPS was Tk 0.27 paisa during the same period last year. NAV per share was Tk. 16.37 as of March 31, 2024.
