Investors of the Dhaka Stock Exchange on Wednesday went for an angry street protest when the general index of the bourse fell further following the finance minister's declaration that the source of undisclosed money invested in the capital market could be questioned.
The DGEN, the benchmark general index of the DSE, on Wednesday shed 1.11 per cent, or 68.35 points, from where it had closed on the previous day.
The turnover of the bourse, however, increased on the day to Tk 435.67 crore from that of Tk 354.29 crore on the previous day as the sellers outnumbered the buyers.
Market operators said some investors went for panic-selling on Wednesday, fearing that the latest government move to detect the source of undisclosed money would lead the market to fall further.
'The finance minister's announcement to detect the source of undisclosed money would perhaps discourage investment, even by the big market players,' remarked a stockbroker.
He also expressed the apprehension that such a move during the current bear run might worsen the market condition and lead it to another crash.
Finance minister Abul Maal Abdul Muhith on Tuesday said the government was making some changes to the Statutory Regulatory Order relating to money-whitening to stop investment of money laundered or obtained through terror routes in the capital market.
'We're amending the SRO on income tax. It's now with the law ministry and will be circulated soon,' Muhith told reporters after a meeting at the finance ministry.
Though investment of undisclosed income in the share market could not be questioned under the Income Tax Ordinance, it could be under other laws following the SRO, he said.
Parliament on June 29 passed the Finance Bill 2011, allowing investment of undisclosed money in the equities market as well as in treasury bonds and the government's infrastructure development fund, subject to payment of 10 per cent tax by the end of the current fiscal year.
The market was in an uptrend before the passage of the budget and it rose significantly in July-August after the government had allowed investment of undisclosed money in stocks.
The turnover of the DSE posted a record high of the year on July 24, rising to Tk 1,957.92 crore from Tk 954.84 registered on June 30.
But, the turnover of the bourse started to fall from late July due to a number reasons including poor corporate disclosures made by a number of listed companies, the tight monetary policy adopted by the Bangladesh Bank, and the Securities and Exchange Commission's announcement of taking legal action against some suspected market manipulators.
Investors on Wednesday took to the streets and chanted slogan against the finance minister.
They termed Muhith the leader of the gamblers and demanded his immediate resignation for failing to stabilise the capital market.
They also took out a procession after the trading hours on the day and paraded the road between Shapla Square and Ittefaq Crossing in Motijheel.
Of the 257 issues traded on the day, 61 advanced, 187 declined, and nine remained unchanged
Source : New Age
