Stocks finish flat despite banks’ rebound

Staff Correspondent | Published: 22:29, Sep 12,2017

 
 

Dhaka stocks inched down on Tuesday after a 16-points fall in the previous day as a section of investors went for profit taking while some others moved towards fresh buying of financial shares.
The key index of Dhaka Stock Exchange, DSEX, inched down by 0.02 per cent, or 1.80 points, to finish at 6,149.39 points on Tuesday.
Although the equity market went through a choppy session with a few fluctuations amid buying and selling pressure from the investors that resulted in a flat closing of the day.
Investors were jittery on the trading floor as investment and profit taking in the market resulted in an even effect, market operators said.
They said that following the steady surge of the market in recent time, a section of investors moved on profit making while some remained in a buying spree that caused the market ending flat.
As the three indices of the bourse hit fresh high for several times in recent period, investors were expected to be prudent to cash in some gains of their investment before those fell from higher level, brokers said.
The market ended negative as the slump in average share prices of cement, telecommunication and energy outpaced the gains from financial stocks, stockbrokers said.
The three prominent sectors declined by 2.5 per cent, 1.6 per cent and 0.2 per cent respectively on Tuesday.
On the other hand, many investors went for investment in the market assuming that the market would rise more, they said.
As a result, an increased share purchasing from financial and pharmaceuticals sectors shielded the market from significant fall, they said.
Average share prices of banks, non-bank financial institutions and pharmaceuticals increased by 0.6 per cent, 0.5 per cent and 0.2 per cent respectively.
They also said that the overbought nature of the market demanded caution from the investors and rebalancing their equities to avoid any unforeseen risks.
Among the prominent stocks, Grameenphone and Lafarge Surma Cement were the highest negative index mover of the day.
The turnover on the bourse, a key indicator of the investors’ participation increased little to Tk 1,203.70 crore on Tuesday, compared with that of Tk 1,152.34 crore in the previous session.
‘Market started on the day with an upswing vibe as opportunistic investors continued taking position on stocks, especially from Banks,’ said EBL Securities in its daily market commentary.
‘However, market took the reverse swing in the later part of the session as investors spurred selling pressure on stocks from telecommunication, cement and food and allied sectors,’ it said.
DS30, the blue-chip index of the DSE, dropped as well by 0.44 per cent, or 6.04 points, to close at 2,200.72 points.
The Shariah index, DSES, decreased 0.36 per cent, or 8.06 points, to finish at 1,365.65 points.
Of the 331 companies and mutual funds traded, 157 declined, 127 advanced and 48 remained unchanged.
LankaBangla Finance led the turnover chart with its shares worth Tk 73.67 crore changing hands.
MJL Bangladesh, FAS Finance, Premier Bank, Grameenphone, City Bank, Mercantile Bank, National Bank, Square Pharmaceuticals and Lafarge Surma were the other turnover leaders.
FAS Finance and Investment increased the most with a 5.78-per cent rise in its share prices, while Meghna Cement Mills was the worst loser, shedding 4.88 per cent. 

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