Dhaka stocks drop sharply on profit taking

Staff Correspondent | Published at 10:48pm on December 11, 2016

Dhaka stocks declined on Sunday, the first trading session of the week, amid a decline in share prices of most of the traded scrips due to investors’ profit-taking sales following a four-day market surge in last week.
The key index of Dhaka Stock Exchange, DSEX, finished at 4,861.12 points, shedding 0.64 per cent or 31.69 points.
Stockbrokers said the prices of more than two-third of the traded scrips declined on the day mainly due to investors’ profit-booking share sales.
The recent rise in share prices was the reason that prompted investors to book profit, they said.
The DSEX in the previous four trading sessions had advanced by 70 points. It had gained 248 points without any significant profit booking in 18 trading sessions.
Benchmark DSEX was at 4,644 points on November 14 that increased to 4,892 points on Thursday last week.
Stockbrokers said that the recent spell of market surge was the reflection of a number of issues that included absence of political uncertainty, downward rate of interest on bank deposit products and injection of fresh fund by high net worth individuals, who were earlier inactive on the trading floor due to a prolonged sluggishness at the market.
On the sectoral front, average share prices of textile, bank, non-bank financial institution and pharmaceutical sectors fell by 1.10 per cent, 0.81 per cent, 0.55 per cent and 0.36 per cent respectively.
Turnover on the bourse also declined to Tk 823.63 crore compared with that of Tk 1,149.83 crore in the previous trading session.
Of the 325 companies and mutual funds traded, 81 advanced, 204 declined and 40 remained unchanged.
‘The first trading session of this week observed profit taking from investors,’ said LankaBangla Securities in its market report.
Most scrips experienced corrective pullback in prices after a major rally in last two weeks, it said.
‘All major sectors were down while only paper and printing and real estate observed meagre gain,’ the stockbroker said.
DS30, the blue-chip index of the DSE, fell by 0.63 per cent or 11.47 points, to close at 1,784.18 points.
The Shariah index, DSES, fell by 0.58 per cent, or 6.79 points, to close at 1,154.57 points.
Summit Alliance Port led the turnover chart with its shares worth Tk 22.92 crore changing hands.
AFC Agro Biotech, MJL Bangladesh, Shasha Denims, Ratanpur Steel Re-Rolling Mills, Appollo Ispat Complex, City Bank, Active Fine Chemical Industries, IFAD Autos and BD Thai Aluminium were the other turnover leaders.
Wata Chemicals gained the most with a 7.01-per cent rise in its share price, while Zeal Bangla Sugar Mills was the worst loser, shedding 9.84 per cent.