Dhaka stocks dropped on Wednesday because of profit taking sales, especially from the large capitalised sectors, following recent surge in share prices.
The key index of the bourse, DSEX, declined 0.68 per cent, or 39.98 points, to close at 5,790.78 points on Wednesday after gaining 85 points in the previous three sessions.
The benchmark index had gained 355 points in the previous 13 trading sessions that prompted investors to book some profit, market operators said.
The market dropped on the day with slump in share prices of two-third scrips as investors preferred profit taking sales to avoid any unforeseen loss, they said.
The market was negative from the beginning of the trading on the day as investors continued with their profit taking sales which they began in late hour of Tuesday. The sales strengthened in the last hour of the session and the index dipped steeply, closing 40 points down.
The core index remained above the psychological barrier of 5,800 points mark in the previous two sessions that did not sustain for another session.
They said that the investors moved to earn profits on shares that saw major gains in recent market surge including rise in scrips of energy and financial shares.
As a result, bank, non-bank financial institutions and energy declined 0.85 per cent, 0.78 per cent and 0.52 per cent respectively.
Out of 30 traded bank shares, 23 declined, 3 advanced and 4 remained unchanged while out of 18 traded energy scrips, 16 declined and 1 advanced and 1 remained unchanged on the day.
‘The capital bourse of the country observed a correction mode today and edged significantly in lower zone,’ said EBL Securities in its daily market report.
However, the share prices of food and allied sector increased on the day as food inflation surged in the fourth quarter of the last fiscal year, it said.
As a result, the share prices of the sector surged by 0.75 per cent on Wednesday.
The share prices of British American Tobacco and Islami Bank increased most on the day.
Many investors chose to be in the sideline to watch the next move of the market after profit taking in the previous session.
As a result, the turnover on the bourse dipped to Tk 914.28 crore from that of Tk 1,320.68 crore in the previous trading session.
DS30, the blue-chip index of the DSE, slid 0.48 per cent, or 10.28 points, to close at 2,116.31 points.
The Shariah index, DSES, dropped 0.39 per cent, or 5.16 points, to finish at 1,316.69 points.
Of the 331 companies and mutual funds traded, 232 declined, 65 advanced and 33 remained unchanged.
Keya Cosmetics led the turnover chart with its shares worth Tk 74.76 crore changing hands.
Generation Next Fashions, IFAD Autos, Fu Wang Foods, Bangladesh Export Import Company, Islami Bank, Tung Hai Knitting, Nurani Dying, Saif Powertec and Agni Systems were the other turnover leaders.
Generation Next Fashions gained the most with a 5.50 per cent increase in its share price, while Progressive Life Insurence was the worst loser, shedding 7.48 per cent.
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