The government's tax measures contradict its plan to turn the stock market into a destination for long-term investments, something apparent in the pace with which individuals and institutions trade shares simply to make a quick buck.
Low-performing stocks have kept dominating over blue-chip and sound shares in an unpromising sign that the stock market in Bangladesh is driven more by speculation instead of the health and performance of companies.
The mutual fund sector should perform better as it has failed to play the expected role in developing a strong stock market in Bangladesh, stock market analysts said today.
Sandhani Asset Management is all set to launch the country’s first no-dividend mutual fund, which is the most tax-efficient investment tool of its kind.
The government has proposed a 2.5 percentage point cut in corporate tax rates for the listed companies in the national budget unveiled for the next fiscal year in a bid to develop the stock market and attract investments.