Market closes lower as investors minimise risks

Dhaka,  Tue,  26 September 2017
Published : 17 Aug 2017, 21:41:16
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Market closes lower as investors minimise risks

Analysis
FE Report


The Dhaka bourse witnessed moderate correction in the second consecutive session on Thursday, as the investors preferred to book quick-gain on bank issues.

Market insiders said the news of extending the time for share transactions from the investors' accounts with negative equity burden, which is due to market crash in 2010-11, for one more year failed to buoy the investors. Rather, bank shares faced major correction.

"Although most sectors saw positive movement, the premier bourse went through further correction due to steep correction of banking shares," said Sheltech Brokerage in an analysis.

After gaining over few trading sessions, the banking sector, the bellwether of the market, slid 1.76 per cent further on Thursday, as prices of 29 banks, out of 30 faced correction.

The market started on an optimistic note as the investors continued their buying binge to take positions in sector-specific stocks.  However, the profit-booking tendency of risk-averse investors pulled down the market in the later part of the session.

Finally, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), went down 22.12 points or 0.37 per cent to settle at 5,861 points.

EBL Securities, a stockbroker, said, "The market stayed in the red zone due to profit-taking tendency of investors."

The stockbroker noted that the market started with an upbeat tune riding on fuel & power and telecommunication issues, but tumbled as cautious investors booked profit on heavyweight banking shares.

The DS30, comprising blue chips, also fell 3.23 points or 0.15 per cent to close at 2,109.  However, the DSE Shariah Index (DSES) inched up 0.26 points or 0.02 per cent to finish at 1,304 points.

A total of 0.136 million trades were executed in the trading session, generating a turnover of Tk 8.32 billion with trading volume of 234.77 million securities.

The total market capitalisation of the DSE stood at Tk 3,970 billion, which was Tk 3,967 billion on the previous day.

All large-cap sectors showed positive performance, except for banks which lost 1.76 per cent as prices of 29 banks closed in the red.

Fuel & power posted the highest 1.52 per cent gain, followed by telecommunication (1.16 per cent), food & allied (0.33 per cent), non-bank financial institutions (0.14 per cent), engineering (0.08 per cent) and pharmaceuticals (0.02 per cent).

Most of the securities traded on the day were down on the premier bourse. Of the 331 issues traded, 155 declined, 129 advanced and 47 remained unchanged.

The newly listed BBS Cables dominated the DSE turnover with about 3.34 million shares of Tk 436 million changing hands, closely followed by IFAD Autos, IBN Sina, Salvo Chemicals and IFIC Bank.

Monno Ceramics was also the day's highest gainer, posting a 9.85 per cent rise, while Padma Life Insurance was the biggest loser, plunging 4.79 per cent.

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