Investors book profit on quick-gaining stocks

Dhaka,  Wed,  26 July 2017
Published : 11 Jul 2017, 21:55:16
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Investors book profit on quick-gaining stocks

Analysis
FE Report


Stocks witnessed a marginal gain Tuesday as investors from both sides of the trading fence remained active throughout the trading session.

Brokers said market kept the positive momentum for the third straight session with the key index of the Dhaka Stock Exchange (DSE), hitting new high since its inception on January 27, 2013 amid optimism.

They said the gradual rising trend in turnover in recent days tempted the sideline investors to inject fresh fund into stocks, especially banks, taking the market turnover to five-month high to Tk 13.21 billion.

The prime index of the DSE was sky rocketed since the opening bell, gaining more than 54 points within first hour of trading. The sharp gain, however, ended in an abrupt correction, shedding the entire initial gain as investors booked profit on quick-gaining stocks.

In the latter half of the trading session, DSEX remained sideways, closing the session almost flat.

After four hours trading, DSEX, the prime index of the DSE, went up by 3.58 points or 0.03 per cent to finish at a historical high of 5,831 points, since its inception on January 27, 2013.

The country's prime bourse launched the DSE Broad Index (DSEX) on January 27, 2013 with a base point of 4,055.90, replacing the DSE General Index (DGEN).

However, DGEN, the then key index of the DSE, rose to an all-time high at 8,918.51 points on December 5, 2010, when the market was bullish before crash.

The two other indices also finished higher. The DS30 index, comprising blue chips advanced 4.45 points or 0.21 per cent to finish at 2,127. The DSE Shariah Index (DSES) gained 2.17 points or 0.16 per cent to close at 1,322.

According to a market review of EBL Securities, "Stocks witnessed a slight gain as investors from both sides of the trading fence remained active throughout the trading session."

The stockbroker noted that the market started with an upward note followed by correction in regular intervals, finally edged 3.58 points higher.

"Investors spurred their buying spree on stocks from bank, cement and miscellaneous," said the stockbroker.

A total number of 0.187 million trades were executed in the day's trading session, generating a turnover of Tk 13.21 billion with trading volume of 480.28 million securities.

Meanwhile, block transaction contributed only Tk 104 million to the day's total turnover.

"The market witnessed a volatile session, reflecting investors' indecisive mindset," commented AT Capital Partners, an asset management company, in an analysis.

The AT Capital noted that most of the prominent sectors, except bank and cement, underperformed the market.

LankaBangla Securities, said within the first hour, index gained 54 points, and then within the next hour, index went down to 5,823-level. During the last half of the session, index recovered from its negative position and closed flat at 5,831-level.

Among the major sectors, all except four, registered negative return. Bank, cement, food & allied, and telecommunication sectors were the only major sectors with positive returns that registered 0.90 per cent, 0.35 per cent, 0.10 per cent, and 0.08 per cent return respectively.

Non-bank financial institutions witnessed the highest correction of 0.93 per cent, followed by textile with 0.70 per cent, fuel & power 0.26 per cent. Both pharmaceuticals and engineering issues remained flat in red at 0.07 per cent.

Losers outnumbered the gainers as out of 331 issues traded, 195 advanced, 107 declined and 29 remained unchanged on the DSE trading floor.

Beximco topped the DSE turnover chart with about 17.20 million shares of Tk 609 million changing hands, followed by Keya Cosmetics, Islami Bank, Agni Systems and City Bank.

Agni Systems was the day's highest gainer, posting 7.30 per cent gain, while Bangas was the worst loser, losing 6.70 per cent.

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