Stocks drop on profit taking after record rise of DSEX

Staff Correspondent | Published: 22:50, Jul 06,2017 | Updated: 00:31, Jul 07,2017


Dhaka stocks declined on Thursday amid a slump in share prices of most of the scrips traded on the day as investors went for profit-booking selling after the recent market surge that had seen the key index of Dhaka Stock Exchange hitting a new record.
The DSEX dropped by 0.57 per cent, or 32.99 points, to close at 5,749.65 points on Thursday after hitting its new record at 5,782 points in the previous session.
The benchmark index had gained 321 points in the previous 10 trading sessions.
The market faced heavy selling pressure from the very beginning of the session as most of the investors opted to book profit following the surge in share prices in the last couple of weeks.
The market failed to recover its early losses and remained on the negative trajectory for the whole session of the day for absence of any significant optimistic purchasing against the profit-booking share sales.
Market operators said that the market usually faced correction move when it made fresh records as the investors could not prevent themselves from profit-booking sell-offs.
They also said that continuous surge in the share prices tempted investors to take out their investment to avoid major losses.
Investors who started recently to pour funds in the market on budget issues opted to sell their holdings to divert their investment to different shares, they said.
As a result, all the large capitalised sectors declined on the day where telecommunication and bank dropped the most following the recent surge in their share prices, stockbrokers said.
Telecommunication and bank fell by 4.17 per cent and 0.71 per cent respectively.
The decline in share prices of Grameenphone, Lafurge Surma and Islami Bank Bangladesh played a negative role in the market slump while GP alone moved the key index 35 points down on the day.
The turnover decreased as well to Tk 1,005.44 crore from that of Tk 1,164.92 crore in the previous trading session.
DS30, the blue-chip index of the DSE, slid 0.81 per cent, or 17.19 points, to close at 2,103.57 points.
The Shariah index, DSES, gained 0.80 per cent, or 10.63 points, to finish at 1,306.97 points.
Of the 330 companies and mutual funds traded, 193 declined, 92 advanced and 45 remained unchanged.
Keya Cosmetics led the turnover chart with its shares worth Tk 45.54 crore changing hands.
Grameenphone, ACME Laboratories, Baraka Power, Fu Wang Foods, Saif Powertec, LankaBangla Finance, MJL BD, Doreen Power, C&A Textiles were the other turnover leaders.
Fu Wang Foods gained the most with a 9.37-per cent increase in its share price, while Standard Insurance was the worst loser, shedding 7.30 per cent. 

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