Dhaka stocks drop on profit-taking sell-offs

Staff Correspondent | Published: 23:03, Jul 17,2017 | Updated: 23:32, Jul 17,2017

 
 

Dhaka stocks dropped on Monday after a two-day gain amid investors’ profit-booking share sales after the recent market surge.
The key index of the bourse, DSEX, shed 0.34 per cent, or 20.29 points, to close at 5,824.42 points on Monday after hitting record high at 5,844 points in the previous session.
Although the market kept its bullish trend in the first hour on the day, the vibe did not sustain afterwards and fell steeply when investors went for profit-booking share selling, market operators said.
They said that as the market had been buoyant in recent weeks and had been scaling fresh highs every other day, investors remained very cautious not to get caught off guard when the market would reach vulnerable position before fall.
The DSEX added more than 345 points since June 19 amid injection of fresh funds by the investors, who were inactive for long due to a prolonged depression at the market.
The fall in the index was expected as the market was going upward making records in the index and market capitalisation, market operators said.
As a result of investors’ profit-booking share sales, prices of more than two-thirds of traded scrips declined on the day, they said.
All the large capitalised sectors declined while a slump in average share prices of bank, telecommunication and non-bank financial institutions pushed the market to the negative trajectory on the day, stockbrokers said.
The decline in share prices of Grameenphone, Islami Bank and Lafurge Surma, following their recent surge, fuelled the market volatility on Monday, they said.
On the other hand, major gain in share prices of some large capitalised scrips including Unique Hotel and Resorts, BRAC Bank, Summit Power and Marico Bangladesh saved the market from further fall, they said.
‘The capital bourse of the country observed a correction vibe and closed significantly in lower zone amid profit booking tendency,’ said EBL Securities in its daily market report.
The turnover on the DSE slumped to Tk 1,147.60 crore from that of Tk 1,263.46 crore in the previous trading session.
DS30, the blue-chip index of the DSE, slid 0.01 per cent, or 0.33 points, to close at 2,133.03 points.
The Shariah index, DSES, slipped 0.24 per cent, or 3.27 points, to finish at 1,324.13 points.
Of the 330 companies and mutual funds traded, 214 declined, 82 advanced and 33 remained unchanged.
Confidence Cement led the turnover chart with its shares worth Tk 58.25 crore changing hands.
IFAD Autos, Keya Cosmetics, MJL Bangladesh, Simtex Industries, Bangladesh Building Systems, Doreen Power, LankaBangla Finance, Aftab Automobiles and Fu Wang Foods were the other turnover leaders.
Bangladesh Autocars gained the most with a 7.91-per cent increase in its share price, while United Insurance was the worst loser, shedding 6.55 per cent. 

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