Stocks break five-day winning spell

Dhaka,  Fri,  22 September 2017
Published : 13 Mar 2017, 21:24:08 | Updated : 13 Mar 2017, 23:14:11

Stocks break five-day winning spell

Turnover plunges 22pc on premier bourse
Stocks break five-day winning spell
FE Report

Stocks slipped into the red Monday, breaking a five-day winning spell, as risk-averse investors booked quick-profit on sector specific large-cap issues.

Market insiders said stocks posted meager correction as cautious investors sold shares to bag some profit on quick gaining stocks, leading the market in the red territory.

"The market faced marginal correction amid reduced turnover value as investors' profit taking mood comes into play after five consecutive gaining sessions," said an analyst at a leading brokerage firm.

He noted that slow trend in trading activities motivated the general investors for selling their holdings and some large-cap issues observed sharp correction, contributing the market fall.

The market opened higher and the key index of the premier bourse rose 20 points within 30 minutes of trading but the initial enthusiasm failed to sustain as the session progressed. It tried to pull back in the mid-hour but faded away due to sale pressure from the sellers.

Ultimately, DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled at 5,659.72, losing 16.54 points or 0.29 per cent after adding more than 103 points in the past five consecutive sessions.

The two other indices also finished lower. The DS30 index, comprising blue chips faced sharp correction of 11.64 points or 0.57 per cent to finish at 2,043.38. The DSE Shariah Index (DSES) lost 1.53 points or 0.11 per cent to close at 1,307.27.

Turnover, the most important indicator of the market, fell to Tk 10 billion, which was 22 per cent lower than the previous day's Tk 12.85 billion.

The heavyweight bank sector emerged as turnover leader, capturing more than 17 per cent of the day's total turnover value, followed by textile 15 per cent and non-bank financial institutions 14 per cent.

"Investors preferred sideline, closely observing the market, which lessened total market activities," said IDLC Investments, a merchant bank, in an analysis.

"Stocks took a breath after adding 103 points over the last five consecutive sessions amid late hours sell-offs on sectors specific stocks," said International Leasing Securities, a stockbroker, in an analysis.

The stockbroker noted that the market started with buoyancy but the morning cheerfulness inverted in the later session as risk-averse investors opted to book quick-gain especially from engineering, cement, fuel and power and financial institution sectors.

"Issues from most of the large-cap sectors experienced selling pressure while only a few issues, mostly the small cap issues got buyers attention," said the stockbroker.

"Following last trading session, the prime index broke five days gaining spell as investors took profit from quick gaining stocks of this uptrend," said Sheltech Brokerage, in an analysis.  

The port city bourse, the Chittagong Stock Exchange (CSE), also closed lower with its Selective Categories Index - CSCX - falling 19.87 points to settle at 10,639 points.

Losers beat gainers as 132 issues closed lower, 92 closed higher and 32 remained unchanged on the CSE.

The port city bourse traded 23.58 million shares and mutual fund units' worth over Tk 627 million in turnover.
Editor : A.H.M Moazzem Hossain
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