Dhaka stocks fall after eight-day gain

Staff Correspondent | Published: 22:44, May 18,2021


Dhaka stocks inched down on Tuesday, snapping an eight-day gaining spell as a section of investors went for profit booking while many investors continued buying shares, especially those of insurance companies.

DSEX, the key index of the Dhaka Stock Exchange, shed 0.18 per cent, or 10.85 points, to close at 5,829.23 points on Tuesday after gaining 329 points in the previous eight sessions.

The key index started falling from the beginning of Tuesday’s session and continued with the vibe until the end of the session as investors went for profit booking, market operators said.

They said that share prices of most of the companies soared in the recent rally that provoked a section of investors to take profits.

Moreover, there was a rumour on the market that the Bangladesh Securities and Exchange Commission would remove the floor price restriction for all companies, they said.

Earlier on March 19, 2020, the BSEC introduced the floor price system to bar share prices of listed companies from falling below a certain level amid the coronavirus outbreak in the country.

The BSEC lifted the floor price restriction for 66 companies on April 7, 2021.

The market has gained 665 points in the last 24 trading sessions with just four negative sessions.

Investors kept buying shares of insurance companies as the BSEC has asked the stock market-related entities to provide their employees with health and life insurance policy immediately.

Average share prices of general insurance, textile and life insurance companies advanced by 2.4 per cent, 0.5 per cent and 0.1 per cent respectively.

A surge in share prices of British American Tobacco, Beximco Pharmaceuticals, Prime Bank and Renata saved the market from further fall.

EBL Securities in its daily market commentary said, ‘Investors are also relentlessly taking part in the stock market with fresh funds to enjoy the existing tax benefits ahead of closure of the financial year. Positive expectation from the budget of FY2022 is also keeping investors busy in judging lucrative sectors for fresh investments.’

The investors’ worries over the Covid outbreak continued waning amid a decline in infection and fatality rates.

Turnover on the DSE advanced to Tk 1,719.63 crore on Tuesday from Tk 1,534.62 crore in the previous session.

Tuesday’s turnover was highest after January 17 when it was at Tk 2,384.87 crore.

Of the 362 scrips traded on the DSE on the day, 103 advanced, 215 declined and 47 remained unchanged.

DS30, a composition of 30 large capitalised companies, lost 0.2 per cent, or 4.49 points, to close at 2,194.79 points on Tuesday.

Shariah index DSES also shed 0.3 per cent, or 3.95 points, to settle at 1,281.13 points.

BEXIMCO led the turnover chart with shares worth Tk 114.52 crore changing hands on the day.

Prime Bank, British American Tobacco, Saif Powertec, National Feed Mills, Crystal Insurance, Pioneer Insurance, Robi, City General Insurance and LankaBangla Finance were the other turnover leaders on the day.            

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