DSE welcomes budget, but prime index continues falling

The Dhaka Stock Exchange (DSE), the prime bourse of Bangladesh, welcomed the proposed national budget for the fiscal year 2022-23 although the general investors reacted negatively and the stock index dropped in the first two days of trading in the week.

The DSEX, the benchmark index of the DSE, dropped 87 points in the last two trading days just after the budget was placed in the national parliament.

The general investors saw no exclusive measure for the stock market in the budget so the index has been falling.

However, the DSE hoped that the macroeconomic stability, targeted in the budget, will impact the market positively in the long run.

What is more, the 2.5 percentage points corporate tax cut also will boost profitability of the listed market and thus the stock market index, it said.

The budget proposed a 2.5-percentage point corporate tax cut for listed and non-listed companies so the tag gap remains the same.

In this perspective, the DSE urged to raise the tax gap to at least 10 per cent so that non-listed companies are encouraged to go public.

The DSE came up with the recommendations at a post-budget press briefing at its head office in Nikunja area of Dhaka today.

DSE Chairman Md Eunusur Rahman, Directors Md Siddiqur Rahman and Sharif Anwar Hossain, and Managing Director Tarique Amin Bhuiyan were present at the event.