Stocks drop as banks, telecom dip on profit taking sell-offs

Staff Correspondent | Published: 21:52, Sep 11,2017

 
 

Dhaka stocks dipped on Monday after surge in the previous two trading sessions as investors turned focus on profit booking, especially from telecommunication and bank shares following their recent gains.
The key index of Dhaka Stock Exchange, DSEX, dropped 0.26 per cent, or 16.28 points, to finish at 6,151.20 points on Monday after gaining 98 points in the previous two sessions.
The equity market opened in a bullish trend with gaining an intra-day high of 30 points to touch 6,200 points within first one and half hour of the trading as investors continued their buying frenzy from sector specific shares, market operators said.
Soon after, the market moved down steeply that ended up with a negative session as investors went for profit taking from their recent gains, they said.
The market had made itself vulnerable to profit taking bouts from the higher levels as the market was going through a buoyant period, market operators said.
They also said that the overbought nature of the market demanded caution from the investors and rebalance their equities to avoid any unforeseen risks.
The average share prices of telecommunication and bank sectors slumped by 2.13 per cent and 1.86 per cent respectively and contributed the most losses on the core index after posting a stellar gain in recent time, they said.
The share prices of Grameenphone shuddered by 2.00 per cent and became the highest negative index mover on Monday following significant surge in the previous two sessions.
On the other hand, many investors still remained on buying mood with an expectation that the market could increase further, stockbrokers said.
As a result, the average share prices of cement, pharmaceuticals and energy advanced by 1.5 per cent, 1.2 per cent and 1.0 per cent respectively that saved the market from further fall, they said.
Among the prominent stocks, Investment Corporation of Bangladesh, Square Pharmaceuticals and Lafarge Surma Cement were the highest positive index mover of the day.
The turnover on the bourse, a key indicator of the investor’s participation declined to Tk 1,152.34 crore on Monday compared with that of Tk 1,259.90 crore in the previous session.
‘The prime bourse of the country opened with a positive note that continued for half of the session and then fell down in rest of the session and finally closed in the negative zone as investors shifted their attention towards profit booking after successful rally,’ said EBL Securities in its daily market commentary.
DS30, the blue-chip index of the DSE, however, gained 7.34 per cent, or 7.34 points, to close at 2,208.78 points.
The Shariah index, DSES, also added 0.25 per cent, or 3.44 points, to finish at 1,371.69 points.
Of the 331 companies and mutual funds traded, 170 declined, 122 advanced and 39 remained unchanged.
LankaBangla Finance led the turnover chart with its shares worth Tk 45.67 crore changing hands.
Lafarge Surma, Square Pharmaceuticals, CMC Kamal Textile Mills, Premier Bank, Jamuna Oil Company, City Bank, Fortune Shoes, Bangladesh Export Import Company and National Bank were the other turnover leaders.
S. Alam Cold Rolled Steels increased the most with a 9.94-per cent rise in its share prices, while Meghna Pet Industries was the worst loser, shedding 9.84 per cent.

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