Dhaka stocks dropped on Sunday after a surge in the previous session as investors went for profit taking from the recent gains.
DSEX, the key index of Dhaka Stock Exchange, slumped by 0.99 per cent, or 58.87 points, to close at 5,850.43 points on Sunday after gaining 139.3 points in the previous session.
The core index opened the market with a bullish trend but it failed to continue the momentum and closed the session in the negative trajectory as the investors went for profit taking share sales, market operators said.
They said that share prices of most of the large capitalised companies had surged in recent days that had provoked the investors to realise their gains.
Share prices of BEXIMCO, Beximco Pharmaceuticals, LafargeHolcim Bangladesh, LankaBangla Finance and Square Pharmaceuticals plummeted on the day after significant gains recently.
Market experts said that the market had been surging in recent days riding on the back of a few large capitalised companies’ shares that had made the market vulnerable.
Although the market had advanced by around 1,000 points in the last two months, share prices of some 40 companies were still stuck on the floor price.
Fifty per cent of bank shares were trading below Tk 15 each.
Many people have moved to the capital market to invest their funds on the stock market for better returns due to a decline in the banks’ interest rate, the market operators said.
The BSEC on January 13 also set the maximum limit on margin loan rate at 12 per cent that drew the attention of many investors, they said.
Previously, brokerage houses and merchant banks used to charge their clients 15-30 per cent against margin loans.
Robi Axiata Limited, which made its debut on December 24, took a breather on Sunday after a surge in the previous 15 consecutive days to close at Tk 64.5 a share.
Average share prices of engineering, non-bank financial institution, miscellaneous and pharmaceutical sectors plunged by 4.95 per cent, 3.48 per cent, 3.31 per cent and 2.51 per cent respectively.
Share prices of bank and energy sectors advanced by 2.66 per cent and 2.51 per cent respectively.
Turnover on the DSE soared to Tk 2,384.87 crore on Sunday compared with that of Tk 2,070.85 crore in the previous session.
Of the 360 scrips traded on the DSE on Sunday, 231 declined, 72 advanced and 56 remained unchanged.
DS30, a composition of 30 large capitalised companies, decreased by 1.24 per cent, or 27.95 points, to close at 2,208.82 points on the day.
Shariah index DSES also shed 1.82 per cent, or 24.18 points, to settle at 1,299.31 points.
Robi Axiata led the turnover chart with shares worth Tk 281.27 crore changing hands on the day.
Bangladesh Export Import Company, LankaBangla Finance, Summit Power, Beximco Pharmaceuticals, City Bank, LafargeHolcim Bangladesh, IFIC Bank, National Bank and BD Finance were the other turnover leaders on the day.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Stocks