Stocks drop on profit taking after 5-day rise

Staff Correspondent | Published: 00:24, Jul 14,2020


Dhaka stocks snapped a five-day rally on Monday as a section of investors went for a profit taking sell-offs.

DSEX, the key index of the Dhaka Stock Exchange, dropped by 0.24 per cent, or 9.90 points, to close at 4,089.51 points on the day after gaining 118 points in the previous five trading sessions.

The core index opened with an upward movement, but did not sustain for long and finished with marginal loss as investors went for profit taking after the recent gains, market operators said.

They said that the DSEX saw the highest gain in a rally after February this year that might influence some investors to realise some gains.

After a long stagnation in the wake of global pandemic, the market has been showing some agility with rising investors’ participation since July 8 when the bourse returned to its normal four-hour trading, they said.

Some investors had moved to buy shares at the lowest possible prices under the floor price system as they presumed that the regulatory ceiling would not be lifted soon.

The Bangladesh Securities and Exchange Commission on March 19 introduced the mechanism to check free fall on the market amid the pandemic.

Besides, the BSEC on July 2 asked 61 directors of 22 companies to comply with 2 per cent minimum shareholding rules, and investors assumed that the directors would buy shares that would raise share prices of the respective companies.

Besides profit booking, some investors who could not sell shares for the floor price restrictions might sell shares on Monday after the recent rally.

Many investors are still worried about the coronavirus situation and its possible impact on the economy.

The pathogen has so far killed 2,391 people and infected more than 1,86,795 people across the country.

Corporates are struggling to run business during the pandemic and many employees faced lay-off.

Of the 348 scrips traded on the DSE on Monday, 57 advanced, 127 declined, and 164 remained unchanged.

The turnover on the bourse increased to Tk 377.95 crore on Monday compared with that of Tk 346.96 crore in the previous trading session.

DSE blue-chip index DS30 shed 0.55 per cent, or 7.63 points, to close at 1,376.07 points on the day.

The DSES index also lost 0.42 per cent, or 4.02 points, to settle at 950.84 points.

Square Pharmaceuticals led the turnover chart with its shares worth Tk 20.4 crore changing hands on the day.

Khulna Power Company, Beximco Pharmaceuticals, Orion Pharmaceuticals, LafargeHolcim Bangladesh, Bangladesh Submarine Cables Company, Bangladesh Export Import Company, Grameenphone, Indo-Bangla Pharmaceuticals and ML Dyeing were the other turnover leaders.

Paramount Insurance gained the most on the day with a 9.92-per cent increase in its share prices while Aramit Cement performed the worst, losing 6.92 per cent.

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