Short-term profit booking pulls Dhaka stocks down

Staff Correspondent | Published: 23:37, Oct 19,2016

 
 

Dhaka stocks returned to negative on Wednesday after increase in the previous trading session as almost all the sectors, except banks, faced short-term profit booking share sales.
The key index of Dhaka Stock Exchange, DSEX, declined 0.19 per cent or 9.34 points, to close at 4,702.51 points.
Investors’ short-term profit booking move resulted in a negative ending of the session after the positive ending in last trading session, stockbrokers said.
They also said investors had recently adopted a policy of realizing little margin as profit while the market witnessed volatility in last ten trading sessions.
Of the last trading sessions, market finished positive in six trading sessions and negative in rest four trading sessions.
On the sectoral front, prices of most energy, non-bank financial institutions, pharmaceuticals, cement and textiles sectors’ shares faced price fall.
On the other hand, bank shares kept rising for another session with an average 0.55 per cent rise in share prices.
DS30, the blue-chip index of the bourse, finished at 1,750.54 points, shedding 0.26 per cent or 4.60 points.
The Shariah index of the bourse, DSES, inched down to 1,114.49 points, declining 0.29 per cent or 3.35 points.
Turnover of the bourse declined marginally to Tk 560.26 crore from that of Tk 571.59 crore on Tuesday.
Of the 323 companies and mutual funds traded, 93 advanced, 185 declined and 45 remained unchanged.
‘Morning optimism backed by some positive earnings and corporate disclosures couldn’t resist the market [fall] by the end of the session,’ IDLC Investments said in its daily market commentary.
‘Eventually, prime index DSEX spiked to 4,739.4 points within the first 40 minutes of trade while the session ended with a loss of 9.3 points to 4,702.5,’ it said.
‘Market activities remained vibrant, while investors’ trading concentration mostly remained in banks,’ it said.
‘Market opened nicely higher in the morning, but surrendered all of its early gains as the session progressed,’ said LankaBangla Securities in its market report.
‘At the end of the trading most of the stocks ended in negative territory as investors were tempted by profit booking activities,’ it said.
‘Only banking stocks managed to advance on Wednesday. Seems like, investors are trying to remain in sideline to safeguard their position and prompted to take short-term capital gains in market,’ the stockbroker said.
NBL led the turnover list with its shares worth Tk 36.12 crore changing hands.
Doreen Power Generation and Systems, Grameenphone, Active Finance Chemical Industries, Summit Power, BD Thai Aluminum, Square Pharmaceuticals, First Security Islami Bank, BSRM Limited and MJL Bangladesh were among other turnover leaders.
Standard Insurance gained the most on the day with a 9.94 per cent rise in its share prices, while Rahim Textile Mills was the worst loser, shedding 7.78 per cent. 

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