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.
Dhaka Stock Exchange DSE, Bourse on the last working day of the week, 2nd May, ended with a hike in Indices and Turnover from the previous working session. This information is known from DSE sources.
710 crore 62 lakh taka shares were traded on this day. 125 crore 9 lakh more tradings were done in DSE today compared to the previous workday, 30th April , Shares worth Tk 835 crores 72 lakh shares were traded last time, Tuesday.
The benchmark DSEX added 30.99 points or 5,615 The Shariah-based index DSES gained 4.92 points or 1,232, and the blue-chip index DS30 increased by 12.55 points or 2,007.
Of the issues traded, 207 advanced, 140 declined and 48 remained unchanged.
Sinobangla Industries Limited ranked top gainer on DSE, the share price increased by Tk 4.00 paisa or 9.95 percent. On this day, the share was last traded at Tk 44.20 paisa.
Rupali Bank PLC ranked top loser on the DSE, the share price dropped by Tk 4.10 paisa or 15.07 percent. On this day, the share was last traded at Tk 23.10 paisa.
DSE topped on trade is Sonali Aansh Limited 63 crore 49 lakh takas of company shares have been traded.
A total of 43 companies’ shares were traded in the Block on Dhaka Stock Exchange. A total of 1 crore 67 lakh 76 thousand 965 shares of the companies were traded. The financial value of which is 70 crore 01 lakh taka
8 listed mutual funds disclose their financial reports for the third quarter, (January – March 24). This information is known from DSE sources.
SEML FBLSL Growth Fund: earnings per unit (EPU) loss Tk 0.74 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.08 paisa during the same period last year. NAV per unit at Market Price was Tk. 9.35 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.50 as of March 31, 2024.
SEML Lecture Equity Management Fund: earnings per unit (EPU) loss Tk 0.55 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.11 paisa during the same period last year. NAV per unit at Market Price was Tk. 9.47 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 11.12 as of March 31, 2024.
AB Bank 1st Mutual Fund: earnings per unit (EPU) loss Tk 1.24 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.04 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.87 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 11.22 as of March 31, 2024.
Popular Life First Mutual Fund: earnings per unit (EPU) loss Tk 1.55 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.04 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.49 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.98 as of March 31, 2024.
EBL NRB Mutual Fund: earnings per unit (EPU) loss Tk 1.50 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.05 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.67 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.97 as of March 31, 2024.
PHP First Mutual Fund: earnings per unit (EPU) loss Tk 1.50 paisa in Q3 of the current financial year (January – March 24). EPU was Tk 0.02 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.54 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.93 as of March 31, 2024.
Green Delta Mutual Fund: earnings per unit (EPU) loss Tk 0.94 paisa in Q3 of the current financial year (January – March 24). EPU was loss Tk 0.02 paisa during the same period last year. NAV per unit at Market Price was Tk. 9.06 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.33 as of March 31, 2024.
DBH First Mutual Fund: earnings per unit (EPU) loss Tk 1.07 paisa in Q3 of the current financial year (January – March 24). EPU was loss Tk 0.018 paisa during the same period last year. NAV per unit at Market Price was Tk. 8.92 as of March 31, 2024 & NAV per unit at Cost Price was Tk. 10.19 as of March 31, 2024.
One of the Listed companies, Standard Bank PLC has recommended 2.5% Cash Dividend & 2.5% stock Dividend for the year ended December 31, 2023.
In terms of financial performance, The Company has also reported Consolidated EPS of Tk. 1.27 for the year ended December 31, 2023. NAV per share of Tk. 16.93 paisa.
The Annual General Meeting (AGM) of the company will be held on July 29, through the digital platform. The record date for this has been fixed at June 11.
