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Stocks fall marginally on profit taking

Staff Correspondent | Published: 22:52, Sep 17,2020

 
 

Dhaka stocks dropped marginally on Thursday after a gain in the previous two sessions as investors went for profit taking while many others continued buying shares amid optimism.

DSEX, the key index of the Dhaka Stock Exchange, lost 0.23 per cent, or 12.15 points, to close at 5,104.65 points on the day after gaining 24.4 points in the previous two sessions.

The key index was positive for most of the times in Thursday’s session, but moved downwards in the last hour as investors went for profit booking, market operators said.

They said that share prices of most of the companies surged in the recent rally that provoked investors to take some profits.

Share prices of British American Tobacco, Square Pharmaceuticals and United Power Generation Company declined on the day after their recent surges.

Share prices of GQ Ball Pen Industries on Thursday plunged by 8.75 per cent as the Bangladesh Securities and Exchange Commission froze 10 beneficiary owners’ accounts of investors on grounds of unusual trading of the company’s shares.

The commission is investing whether the investors manipulated the share prices of the company, BSEC officials said.

The regulator found that share prices of the company surged by around 200 per cent within 2 months.

The DSEX hit nearly a 13-month high on Wednesday after gaining 1,035 points in the last two months.

Market operators said that the sharp rise in the share prices attracted attention of many new investors while it made a section of investors cautious on the trading floor as correction of share prices was inevitable after appreciation of prices.

However, many investors anticipated that the market would rise further due to huge fund flow to the financial market and faster economic recovery from stagnant situation than it was predicted before, they said.

EBL Securities in its daily market commentary said, ‘The market opened on positive note but cautious investors opted for booking profits following the recent price surge while some investors continued to pour fresh fund amid optimism.’

However, investor’s perception remained positive on the market based on  regulatory stances taken for the interest of investors and also some positive economic activities, upbeat economic data, record remittance inflow and export earnings and an increased fund flow to the financial market, it said.

Market operators said that directors of a number of companies which remained short of mandatory 2 per cent shareholding and 30 per cent joint shareholding moved to buy shares to comply with the BSEC rules while some investors brought shares of the companies to claim directorship in the entities.

Of the 357 scrips traded on the DSE on Thursday, 210 declined, 107 advanced and 37 remained unchanged.

Turnover on the DSE declined to Tk 1,013.8 crore on Thursday compared with that of Tk 1,147.25 crore in the previous trading session.

DSE blue-chip index DS30 dropped by 0.14 per cent, or 2.51 points, to close at 1,761.6 points on the day.

Shariah index DSES shed 0.49 per cent, or 5.7 points, to settle at 1,163.06 points.

Monno Ceramic Industries led the turnover chart with its shares worth Tk 35.06 crore changing hands on the day.

BRAC Bank, Beximco Pharmaceuticals, Delta Brac Housing Finance, Nitol Insurance, Bangladesh Export Import Company, IFIC Bank, LankaBangla Finance,, Republic Insurance and Saiham Cotton were the other turnover leaders on the day.

Share prices of Monno Ceramic Industries shot up on Thursday as the BSEC on the day allowed the company’s shares back to the public market from the spot market.

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