DSEX dips below 5,800-mark

Dhaka,  Thu,  24 August 2017
Published : 12 Jul 2017, 22:24:18

DSEX dips below 5,800-mark

Turnover slumps 31pc on premier bourse
DSEX dips below 5,800-mark
FE Report

After hitting historical high, the core index of the premier bourse faced a major setback Wednesday and dipped below 5,800-mark as cautious investors booked quick-profit on large-cap issues.

Market insiders said investors mostly preferred to pocket profit on stocks that saw significant gain in recent upsurge, especially banks, non-bank financial institutions, engineering, and fuel & power issues.

"Correction occurred as the market saw a substantial gain in the past few trading days, which prompted many investors to book quick-profit," said an analyst at a leading brokerage firm.

The market opened with a mixed trend and first half of trading session  witnessed volatility, but later half of the session went down steadily, finally closed nearly 40 points lower.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), came down below the 5,800-mark after two sessions and settled at 5,791, losing 40 points or 0.68 per cent after adding 175 points in the past eight sessions.

IDLC Investment, a merchant bank, "Recently making it to the historical high, broad index DSEX fell by 40 points on profit booking pressure".

The merchant bank noted that except for food & allied all the major sectors faced correction led by bank and non-bank financial institutions

"Sell pressure was persistent in all the cap classes, forcing them to close red. Small-cap issues were the worst loser among all the cap classes," the merchant bank added.

Turnover, the important indicator of the market, also came down to Tk 9.14 billion, which was 31 per cent lower than the previous day's five months high turnover of Tk 13.21 billion.

Textile sector emerged as turnover leader, grabbing 22 per cent of the day's total turnover, followed by pharmaceuticals 16 per cent and bank 14 per cent.

EBL Securities, a stockbroker, said, the early session in the market observed bullish vibe as some investors spurred their buying binge on food & allied issues in response to recent upsurge food inflation.

"However, the market reversed in the later session as market participants opted to book quick-gain on stocks from banks, non-bank financial institutions and engineering sectors,"  the stockbroker.

All the large-cap sectors showed negative performance except food & allied which advanced 0.75 per cent.

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.

The losers took a strong lead over the gainers as 330 issues traded, 232 closed lower, 65 closed higher and 33 remained unchanged on the DSE trading floor.

Keya Cosmetics emerged as turnover leader after one-session break, 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.

The port city bourse, the Chittagong Stock Exchange (CSE), also closed lower with its Selective Categories Index - CSCX - shedding 101 points to settle at 10,852.

Losers beat gainers as 212 issues closed lower, 54 closed higher and 15 remained unchanged on the CSE.

The port city bourse traded 24.68 million shares and mutual fund units' worth Tk 570 million in turnover.

Editor : A.H.M Moazzem Hossain
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