Dhaka stocks inch down on portfolio rebalancing

Staff Correspondent | Published: 00:00, Aug 22,2019


Dhaka stocks inched down on Wednesday after gains in the previous four sessions as some investors went for profit taking and rebalancing their portfolios with the aim of buying shares of sector-specific large capitalised scrips, expecting better corporate declarations from the companies.

DSEX, the key index of the Dhaka Stock Exchange, shed 0.07 per cent, or 4.08 points, to close at 5,223.41 points on Wednesday after gaining 40 points in the previous four sessions.

After a slight rise at the beginning of the day, the market moved downwards and eventually finished in the negative session as investors went for profit taking and rebalancing their portfolios, market operators said.

They said that investors took profits after an increase in share prices in recent days.

The financial companies led the slide as Bangladesh Bank on Monday directed that the banks must maintain cash reserve ratio and statutory liquidity ratio for the banks against their exposure through offshore banking operations.

Market operators said investors feared that the rules might worsen liquidity situation in the financial sector.

The share prices of Grameenphone returned to the negative trend, falling by 1 per cent on Wednesday after a gain in the previous two sessions that weighed with the DSEX seven points negative.

The share prices of mutual fund, telecommunication, life insurance and bank sectors dropped by 1.31 per cent, 0.99 per cent, 0.65 per cent and 0.35 per cent respectively.

Some investors kept buying shares with an expectation that the listed companies, whose financial year ended in June, would start declaring better dividends and earnings results, market operators said. The average share prices of energy sector advanced by 0.65 per cent on Wednesday.

Out of the 353 scrips traded on Wednesday, 194 declined, 123 advanced and 37 remained unchanged.

Turnover on the bourse advanced to Tk 542.55 crore on Wednesday from Tk 472.94 crore in the previous session.

DS30, the blue-chip index of the DSE, lost 0.21 per cent, or 3.87 points, to close at 1,841.67 points.

DSE Shariah index DSES decreased by 0.02 per cent, or 0.25 points, to close at 1,204.49 points.

United Power Generation Company led the turnover chart with its shares worth Tk 67.83 crore changing hands.

Orion Infusion, Fortune Shoes, JMI Syringe, Bangladesh Shipping Corporation, Monno Ceramic Industries, Beacon Pharmaceuticals, Khulna Power Company, Silco Pharmaceuticals and Al-Haj Textiles were the other turnover leaders.

RAK Ceramics gained the most on the day with a 10-per cent increase in its share prices while SEML FBLSL Growth Fund was the worst loser, shedding 8.33 per cent.

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