Stocks drop for 3rd day

Walton debuts tomorrow

Staff Correspondent | Published: 00:00, Sep 22,2020


Dhaka stocks plunged on Monday, extending the losing streak to the third consecutive session as investors continued booking profits after the recent surge in share prices, keeping an eye on Walton Hi-Tech Industries which will make its debut tomorrow.

DSEX, the key index of the Dhaka Stock Exchange, lost 1.5 per cent, or 76.74 points, to close at 5,012.12 points on the day.

The DSEX lost 104.67 points in the last three sessions.

The key index started falling from the beginning of Monday’s session and descended sharply as time progressed as investors increased share sales to book profits, market operators said.

Besides, a group of investors went for selling shares after the DSE declared that trading of the shares of Walton Hi-Tech Industries would begin on September 23.

Market operators said that investors liquidated their portfolios to buy shares of Walton.

They said that share prices of many companies had soared by more than 20 per cent recently that tempted investors to realise some profits.

The market lost in the last three sessions after the DSEX had gained 1,140 points in the three-month surge that recovered around Tk 75,200 crore in market capitalisation.

On Monday, some investors became shaky observing the sudden plunge in the share prices that made them undecided about investment in the market, market operators said.

Of 30 blue-chip companies, 28 dropped and just 2 gained on the day.

Besides, financial sectors including bank, non-bank financial institution and insurance faced a huge selling pressure on Monday.

Share market expert and Dhaka University honorary professor Abu Ahmed told New Age that the market became overheated due to the recent surge and now it went through a correction.

‘However, the junk and fundamentally weak companies contributed significantly to the recent rally, but gambling stocks don’t sustain long,’ he added.

MTB Capital chief executive officer Khairul Bashar Abu Taher Mohammed said that the market fell for the third day due mainly to profit-taking share sales by investors.

He said that share trading of Walton would start tomorrow that accelerated selling pressure on the market as some investors wanted to buy shares of the company.

Mutual funds hit the roof on Monday as unit prices of all 37 funds advanced on the day.

Market operators said that the Bangladesh Securities and Exchange Commission was planning to revive the ailing mutual fund sector to recoup the investors’ confidence.

The market has been rising in recent days for lower bank interest rate, speedy economic recovery and market stabilisation measures by securities regulator.

EBL Securities in its daily market commentary said that the risk-average investors continued profit-booking selling pressure after the recent rally.

‘The news of Walton Hi-tech Industries trading from Wednesday also created some selling pressures on the market as investors freed some funds with a view to buying the newly listed stock,’ it said.

Of the 357 scrips traded on the DSE on Monday, 259 declined, 82 advanced and 14 remained unchanged.

Turnover on the DSE dropped to Tk 977.58 crore on Monday compared with that of Tk 1,103.88 crore in the previous trading session.

DSE blue-chip index DS30 dropped by 1.47 per cent, or 25.9 points, to close at 1,726.96 points on the day.

Shariah index DSES shed 1.32 per cent, or 15.26 points, to settle at 1,138.11 points.

Delta Brac Housing Finance led the turnover chart with its shares worth Tk 26.63 crore changing hands on the day.

Bangladesh Export Import Company, Rupali Insurance Company, Beximco Pharmaceuticals, Purabi General Insurance, BRAC Bank, BD Finance, Nitol Insurance, Square Pharmaceuticals and Bangladesh Submarine Cables Company were the other turnover leaders on the day.

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