Dhaka stocks in the past week snapped a seven-week gaining streak as investors went for profit booking after the recent surge in share prices.
DSEX, the key index of the Dhaka Stock Exchange, lost 1.24 per cent, or 73.13 points, over the past week to close at 5,836.18 points on January 21, the last trading session of the week after gaining 1,045 points in the previous seven weeks.
The key index plunged in the first two sessions in the past week that outweighed slight gains in the last three days of the week as investors went for sales to book profits, market operators said.
They said that share prices of a number of companies soared in the previous seven weeks that had provoked investors to realise profits.
Share prices of BEXIMCO, Grameenphone, Square Pharmaceuticals and LafargeHolcim Bangladesh dropped over the week following their recent gains.
The market had gained in the previous seven weeks as many people had moved to the capital market to invest their funds in the stock market for better returns due to a decline in the banks’ interest rate, market operators said.
The BSEC on January 13 also set the maximum limit on margin loan rate at 12 per cent that drew the attention of many investors, they said.
EBL Securities in its weekly market commentary said, ‘The index has faced major corrections in the first two sessions and stayed mostly flat afterwards as the heightened investor’s enthusiasm appeared to cool down in the week.’
However, some positive regulatory initiatives, including an Insurance Development and Regulatory Authority’s instruction to insurance companies to comply with rules, were announced in the week, it said.
Average share prices of cement, engineering, non-bank financial institution and pharmaceutical sectors dropped by 10.5 per cent, 4.8 per cent, 2.4 per cent and 2.3 per cent respectively.
Share prices of general insurance and bank sectors advanced by 1.6 per cent and 0.9 per cent respectively.
The insurance sector soared on January 18 as the IDRA asked all listed and non-listed insurance companies to comply with rules by raising shareholdings by their sponsors to 60 per cent in their respective companies and the companies’ minimum paid-up capital to Tk 30-40 crore within one month.
Energypac Power Generation Limited, which made its debut on January 19, closed at Tk 76.6 a share on January 21.
Out of the 364 issues traded in the past week, 229 declined, 84 advanced and 51 remained unchanged.
DSE’s blue-chip index DS30 dropped by 1.27 per cent, or 28.33 points, to finish at 2,208.45 points.
The daily average turnover on the DSE dipped to Tk 1,564.97 crore in the past week compared with that of Tk 1,868.65 crore in the previous week.
Shariah index DSES also shed 2.18 per cent, or 28.86 points, over the past week to close at 1,294.65 points.
Robi led the turnover chart with its shares worth Tk 812 crore traded in the past week.
Bangladesh Export Import Company, Summit Power, LankaBangla Finance, Beximco Pharmaceuticals, City Bank, LafargeHolcim Bangladesh, IFIC Bank, National Bank and Bangladesh Finance and Investment Company were the other turnover leaders.
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