Dhaka stocks in the past week snapped the longest 13-week gaining streak as investors became cautious and went for profit booking after the massive rally.
DSEX, the key index of the Dhaka Stock Exchange, plunged by 2.47 per cent, or 125.87 points, over the week to close at 4,978.78 points on September 24, the last trading session of the week after gaining 1,143 points in the previous 13 weeks.
The key index lost in the first three sessions and gained slightly in the last two days of the past week as investors became cautious on the trading floor, market operators said.
Investors apprehended that the market could face correction after it had gained in the previous 13 weeks that influenced investors to take some quick profits, they said.
The Bangladesh Securities and Exchange Commission also took some punitive measures to contain unusual share transactions.
Besides, a section of investors also became nervous about the looming second wave of coronavirus infections.
The government has already asked the authorities concerned to take precautions against the second wave of COVID-19 infections feared to begin in October-November.
The market witnessed the longest 13-week rally that started on June 18 as the investors’ confidence improved amid signs of economic recovery in the country and various measures taken by the BSEC to stabilise the market, market operators said.
Besides, a fall in the banks’ interest rate played a key role for the stock market as many depositors turned their focus to the market to make high profits, they said.
Walton Hi-Tech Industries made its debut on the stock exchanges on September 23 and its share price jumped by 125 per cent in the first two sessions with trading of a very few shares of the company.
The share prices of the company closed at Tk 567 per share on September 24 on the DSE.
EBL Securities in its daily market commentary said, ‘The index experienced selling pressure as cautious investors continued booking profits on sector specific stocks which saw significant gains in the past few weeks while optimistic investors took positions on lucrative stocks amid optimism. However, some investors adopted a “wait and see” approach ahead of the financial year-end declarations.’
The average share prices of bank, non-bank financial institution, energy and pharmaceutical sectors dropped by more than 3 per cent each in the week.
Share prices of life insurance, general insurance and mutual funds sectors advanced by more than 11 per cent each over the week.
Out of the 359 issues traded in the past week, 224 declined, 125 advanced and 10 remained unchanged.
The daily average turnover on the DSE dropped to Tk 914.74 crore in the past week compared with that of Tk 1,127.06 crore in the previous week.
DSE’s blue-chip index DS30 plummeted by 3.43 per cent, or 60.4 points, to finish at 1,701.20 points.
DSES, the Shariah index of the bourse, also shed 3.16 per cent, or 36.75 points, over the week to close at 1,126.31 points.
Beximco Pharmaceuticals led the turnover chart with shares worth Tk 159.27 crore changing hands in the past week.
Bangladesh Export Import Company, Rupali Insurance Company, BRAC Bank, Delta Brac Housing Finance, Nitol Insurance Company, Purabi General Insurance, Square Pharmaceuticals, Bangladesh Finance and Investment Company and Rupali Life Insurance Company were the other turnover leaders.
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