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Dhaka stocks drop on profit taking

Staff Correspondent | Published: 22:24, Feb 20,2020

 
 

Dhaka stocks dropped on Thursday after a slight gain in the previous day as investors went for profit taking after the recent rally amid a Bangladesh Bank’s market stabilisation move.

DSEX, the key index of Dhaka Stock Exchange, dropped by 0.52 per cent, or 24.86 points, to close at 4,758.00 points on the day after gaining 17.6 points in the previous session.

The index gained 349 points in the last eight sessions with two negative days.

The market was choppy throughout the session with ups and downs and eventually ended in the negative zone on late hours selling pressure, market operators said.

They said that a section of investors went for profit-taking share sales after share prices of many companies witnessed a sharp gain in the recent rally.

Share prices of Grameenphone dropped by Tk 10 in the morning session on the day as the telecom regulator on Wednesday declined to accept Tk 100 crore offered by the company as initial payment out of Tk 12,579.95 crore in audit claim.

But, prices of GP shares moved upward soon after the Appellate Division on Thursday ordered GP to pay Tk 1,000 crore to the Bangladesh Telecommunication Regulatory Commission within February 24 as investors anticipated that prolonged dispute might be settled soon.

Although GP and Square Pharmaceuticals, which have the highest impact on index movement, advanced on the day, the market ended with a notable loss as share prices of more than two-thirds of the scrips declined on the day.

The market has witnessed some momentum in recent days after the initiative from the central bank to stabilise it.

The Bangladesh Bank on February 10 issued a circular allowing each schedule bank to borrow up to Tk 200 crore from it with low interest rate to invest in the stock market.

The key index had gained 382.6 points in the following five consecutive sessions.

Market operators said that share prices of banks continued declining as investors might be concerned about their business growth after implementation of single-digit lending rate from April 1.

Besides, banks will declare dividend and annual financial reports soon, they said.

EBL Securities in its daily market commentary said that investors were active on both sides of the fence in early session but the index went towards the negative zone in late hours as many investors opted for profit booking targeting mainly fuel and power, bank, and food and allied sectors.

The average share prices of energy sector dropped by 1.7 per cent, bank 1.4 per cent and non-bank financial institution 1.3 per cent.

Telecommunication, engineering and textile sectors advanced by 3.5 per cent, 1.7 per cent and 0.4 per cent respectively.

The turnover on the DSE dropped to Tk 770.60 crore on Thursday from Tk 837.15 crore in the previous trading session.

Out of the 356 scrips traded on Thursday, 243 declined, 83 advanced and 29 remained unchanged.

DSE blue-chip index DS30 shed 0.42 per cent, or 6.75 points, to close at 1,592.80 points.

Shariah index DSES, however, added 0.25 per cent, or 2.79 points, to end at 1,089.81 points.

Grameenphone led the turnover chart with its shares worth Tk 38.84 crore changing hands on the day.

LafargeHolcim Bangladesh, Confidence Cement, BBS Cables, Summit Power, Doreen Power, Square Pharmaceuticals, Western Marine Shipyard, Golden Harvest Agro Industries and Saiham Textile were the other turnover leaders.

Information Services Network gained the most on the day with a 9.97-per cent increase in its share prices while CAPM BDBL Mutual Fund 01 performed the worst, losing 8.5 per cent.

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