Core index dips below 5,900-mark on DSE

Dhaka,  Tue,  26 September 2017
Published : 16 Aug 2017, 21:50:28
printer

Core index dips below 5,900-mark on DSE

Turnover up 7.45pc on major bourse
FE Report


Stocks plummeted Wednesday, after hitting record high of the major bourse's core index in the day before, as cautious investors booked profit on quick-gaining stocks.

Market insiders said investors mostly preferred to pocket profit on banks, non-bank financial institutions and food & allied issues that saw substantial gains in recent upsurge, taking the core index below 5,900-mark.

"The investors indulged in profit taking in the banking sector, taking the advantage of few days' sharp price surge," said an analyst at a leading brokerage firm.

After gaining for few trading sessions, the bellwether of the market, banking sector slid by 0.85 per cent on the day. Of the 30 listed banks, prices of 24 declined.

The market opened with a positive note, gaining about 30 points within first five minutes of trading, but rest of the session fell steadily, finally ended more than 38 points lower.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), which replaced the DGEN in four-and-a-half-year back, went down by 38.35 points or 0.65 per cent to settle at 5,883.

International Leasing Securities, a stockbroker, said, "The market witnessed a nosedive in its benchmark index as the investors' bagged profits on the stocks that saw price surge in the last few sessions".

"Selling of shares mostly in the cement, textile, financial institutions and bank sectors contributed to the fall in indices," said the stockbroker.

The turnover, an important indicator of the market, rose to Tk 8.36 billion on the DSE, which was 7.45 per cent higher than the previous day's mark of Tk 7.78 billion.

The heavyweight bank sector kept its dominance in the turnover chart, grabbing 30 per cent of the day's total turnover, followed by engineering with 14 per cent and textile 11 per cent.

"The market observed a free falling session as majority of the prominent sectors performed negative," commented AT Capital Partners, an asset management company.

Large-cap sectors showed mixed performance. Telecommunication posted the highest gain of 1.58 per cent, followed by engineering 0.34 per cent, and food & allied remained flat.

The non-bank financial institutions witnessed the highest correction of 1.11 per cent, followed by banks 0.85 per cent, fuel & power 0.73 per cent and pharmaceuticals 0.39 per cent.

The losers took a strong lead over the gainers as 331 issues traded, 237 closed lower, 68 closed higher and 26 remained unchanged on the DSE trading floor.

The newly listed BBS Cables dominated the DSE turnover with about 3.06 million shares of Tk 374 million changing hands, closely followed by Uttara Bank, IFIC Bank, IFAD Autos and Pubali Bank.

The BBS Cables was also the day's highest gainer, posting a 10 per cent rise, while Sunlife Insurance was the worst loser, plunging 12.60 per cent following the news that the board of directors has recommended no dividend for the year ended on December 31, 2016 on the day.

The port city bourse, the Chittagong Stock Exchange (CSE), also returned to the red with its Selective Categories Index - CSCX - shedding 69 points to settle at 11043.

Losers beat gainers as 183 issues closed lower, 55 closed higher and 14 remained unchanged on the CSE.

The port city bourse traded 15.57 million shares and mutual fund units' worth Tk 415 million in turnover.

babulfexpress@gmail.com
ADDRESS
Editor : A.H.M Moazzem Hossain
Published by the Editor for International Publications Limited from Tropicana Tower (4th floor), 45, Topkhana Road, GPO Box : 2526 Dhaka- 1000 and printed by him from City Publishing House Ltd., 1 RK Mission Road, Dhaka-1000.
Telephone : PABX : 9553550 (Hunting), 9513814, 7172017 and 7172012 Fax : 880-2-9567049
Email : editor@thefinancialexpress-bd.com, fexpress68@gmail.com
Copyright © 2017. All rights reserved
Powered by : orangebdlogo
close