Dhaka stocks dropped for the second day on Wednesday as investors went for heavy sales of shares especially those of the insurance sector companies after a significant increase in the companies’ share prices.
DSEX, the key index of the Dhaka Stock Exchange, dropped by 1.14 per cent, or 69.89 points, to close at 6,035.84 points on Wednesday after losing 19.67 points in the previous session.
Before the two-day loss, the DSEX had gained 111.65 points in five sessions.
The key index remained positive in most of the time in Wednesday’s session but moved downwards sharply at the end of the session as investors went for heavy sales of shares, especially those of insurance sector companies, market operators said.
Average share prices of general insurance and life insurance sectors plunged by 5.4 per cent and 4.1 per cent respectively on the day after a significant gain in recent days, they said.
After observing the plunge in the prices of insurance companies’ shares, investors became panicked and went for sales of other sector companies’ shares too, they said.
Average share prices of textile, bank and engineering sectors also dropped by 2.2 per cent, 1.4 per cent and 1.2 per cent respectively.
A plunge in share prices of Pioneer Insurance, Delta Life Insurance, British American Tobacco, Green Delta Insurance and BEXIMCO contributed most to the fall on Wednesday.
The market hit a nearly 41-month high on Monday that prompted investors to bag some quick profits for the second day, they said.
EBL Securities in its daily market commentary said, ‘The uprising pandemic cases in the country have made investors watchful on the bourse. As a result, most of the investors have exerted selling pressure to book profits as the index reached a 40-month high.’
‘Investors were mostly active on mutual fund units which they deemed to be lucrative,’ it said.
Trading of shares of Paper Processing and Packaging Limited, Monno Fabrics Limited, Bangladesh Monospool Paper Manufacturing Co Limited and Tamijuddin Textile Mills Limited began on the main board of the DSE on June 13 again as the companies came out of the over the counter market.
Share prices of all the four companies hit the upper limit of the circuit breaker for the ninth day on Wednesday.
Of the 366 scrips traded on the DSE on Wednesday, 133 advanced, 217 declined and 22 remained unchanged.
Turnover on the DSE inched up to Tk 2,030.03 crore on Wednesday from Tk 2,017.56 crore in the previous session.
DS30, a composition of 30 large capitalised companies, also dropped by 0.76 per cent, or 16.86 points, to close at 2,188.83 points on Wednesday.
Shariah index DSES shed 0.52 per cent, or 6.91 points, to settle at 1,297.39 points.
BEXIMCO led the turnover chart with shares worth Tk 160.14 crore changing hands on the day.
National Feed Mills, Maksons Spinning, Dragon Sweater, Kattali Textiles, SS Steel, Sea Pearl, Orion Pharmaceuticals, Queen South Textiles and Keya Cosmetics were the other turnover leaders on the day.
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