Risk-averse investors opt to book profit on major sectors

Dhaka,  Thu,  20 July 2017
Published : 12 Jul 2017, 22:19:19
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Risk-averse investors opt to book profit on major sectors

Analysis
FE Report


Dhaka stocks witnessed a sharp correction Wednesday, snapping a recent rally, as risk-averse investors opted to book profit on major sectors.

"The benchmark index of the prime bourse witnessed a downbeat note as the investors went for short-term profit booking sell-offs on their investment over the last few sessions' price surges," according to daily market review of International Leasing Securities.

"Selling frenzy in most of the large-cap issues mainly from services, bank, engineering and financial sectors contributed to the plunge in indices," said the stockbroker.

The market started with a bearish tone and continued its downward trend throughout the session while some bargain hunters were active in the mid-session, but failed to reverse the morning trend.

"Index fluctuated in between 5,840-level and 5,820-level in the first half of the trading session. During the last half of the session, index kept falling and closed at 5,791-level," commented LankaBangla Securities, a stockbroker, in an analysis.

After four hours of trading, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 40 points or 0.68 per cent to close at 5,791.

AT Capital Partners, an asset management company, said, "DSEX fell marginally as soon as the market opened before recovering from the deep. After a moderate swing, index, however, tumbled sharply, pulling down the market below 5,800-mark market."   

The two other indices also faced correction. The DS30, comprising blue chips, fell 10.28 points or 0.48 per cent to close at 2,116. The DSE Shariah Index (DSES) lost 5.16 points or 0.39 per cent to finish at 1,317.

The stockbroker noted that only three out of 20 sectors closed positive with food & allied registered 0.75 per cent gain.

The bank sector posted the highest correction of 0.89 per cent, followed by engineering 0.80 per cent, non-bank financial institutions 0.79 per cent, fuel & power 0.52 per cent, pharmaceuticals 0.31 per cent and telecommunication 0.16 per cent.

A total number of 0.143 million trades were executed in the day's trading session, generating a turnover of Tk 9.14 billion with trading volume of 345.47 million securities. Only Tk 42 million came from block transaction.

The total market capitalisation of the DSE also came down to Tk 3,878 billion from the all-time high of Tk 3,893 billion recorded in the previous session.

Losers took the lead over gainers as out of 330 issues traded - 65 advanced, 232 declined and 33 issues remained unchanged in the session.

Keya Cosmetics emerged as turnover leader with about 40.62 million shares of Tk 748 million changing hands, followed by Generation Next Fashions, IFAD Autos, Fu-Wang Food and Beximco.

Generation Next Fashions was the day's highest gainer, posting a 5.50 per cent rise, while Progressive Life Insurance Company was the worst loser, plunging 7.48 per cent.

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