Stocks slump on profit-booking

Dhaka,  Sat,  23 September 2017
Published : 03 Aug 2017, 21:32:55
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Stocks slump on profit-booking

Turnover falls 13pc on premier bourse
FE Report

Stocks slipped into red on Thursday, snapping a three-day gaining streak, as investors opted for profit-booking on quick-gaining stocks.

Brokers said the market witnessed a mild correction as cautious investors took profit from sector-specific stocks which posted substantial gains in the past few days, triggering selling pressure on the Dhaka Stock Exchange.

The market witnessed volatility in the first 30 minutes of the trading session and the prime index went up sharply in the next 30 minutes, crossing the 5,900-mark. However, the rest of the session saw the index falling steadily, as the risk-averse investors indulged in profit-booking from sector-specific issues.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), which replaced the DGEN in four-and-a-half-year back, settled down by 10.71 points or 0.18 per cent at 5,880 points on Thursday, after adding nearly 90 points in the past three consecutive sessions.

The two other indices -- the DS30 index and the DSE Shariah Index (DSES) -- followed suit to finish at 2,123 and 1,312 points, after shedding 8.54 points and 3.52 points respectively.

"Stocks fell after remaining upbeat in the last three sessions amidst short-term profit booking frenzy," commented International Leasing Securities, a stockbroker, in its regular market analysis.

The stockbroker noted that the risk-averse investors opted to book quick gain over the last few sessions' price surge following the news of a decline in the net foreign investment in stocks in July, compared to the previous month, as foreign investors booked profits.

The turnover, an important indicator of the market, fell to Tk 10.78 billion on the DSE, which was nearly 13 per cent lower than the previous day's Tk 12.39 billion.

The bank sector, however, kept its dominance on the turnover chart for the ninth straight session, grabbing 25 per cent of the day's total turnover, followed by textile with 13 per cent and engineering 9.0 per cent.

IDLC Investments, a merchant bank, said, "The market took a slight negative tilt, with DSEX losing 10.71 points, as the market participation slowed down."

A total of 0.150 million trades were executed in the trading session with trading volume of 422.42 million securities.

The total market capitalisation of the DSE also came down to Tk 3,956 billion, from the previous day's record high of Tk 3,965 billion.

Large-cap sectors mostly closed in red. Telecommunication posted the highest correction of 1.17 per cent, as the lone listed mobile phone company, GP fell 1.18 per cent, followed by banks 0.58 per cent, fuel & power 0.18 per cent, pharmaceuticals 0.14 per cent and food & allied 0.10 per cent.

Engineering and non-bank financial institutions inched up 0.40 per cent and 0.21 per cent respectively.

Losers took a modest lead over the gainers as 321 issues were traded -- 165 closed lower, 137 closed higher and 29 remained unchanged on the DSE trading floor.

Generation Next Fashions topped the turnover chart with about 33.46 million shares of Tk 402 million changing hands, closely followed by Saif Powertec, C&A Textile, LankaBangla Finance and City Bank.

Prime Finance First Mutual Fund was the day's highest gainer, leaping 8.45 per cent, while Sinobangla Industries was the biggest loser, shedding 7.64 per cent.

The port city bourse, the Chittagong Stock Exchange (CSE), also closed lower with its Selective Categories Index -- CSCX -- losing 25.54 points to settle at 11,013 points.

Losers beat the gainers, as 141 issues closed lower, 87 closed higher and 30 remained unchanged on the CSE.

The port city bourse traded 30.35 million shares and mutual fund units' worth Tk 637 million in turnover.

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