Stocks fall after 4-week rise

Staff Correspondent | Published: 23:18, Sep 23,2017 | Updated: 23:35, Sep 23,2017


Dhaka stocks declined last week after a four-week rise amid a fall in share prices of two-thirds of the traded scrips as investors went for selling shares to book some profit from all scrips except banks.
The key index of Dhaka Stock Exchange fell by 0.54 per cent, or 33.43 points, over the week to close at 6,203.90 points on Thursday after gaining 342 points in the previous four weeks.
Although share prices of two-thirds of the scrips declined, the surge in share prices of banks recouped most of the losses the index incurred in the week, stockbrokers said.
Although the equity market started the week with bullish trend with gaining 34 points on Sunday, it lost the momentum from the next session and ended the week negative.
The market tumbled over the week as investors went for profit-taking selling binge following the surge, they said.
As the market had four buoyant weeks amid scaling fresh highs every other day, investors were expected to be prudent to lock in some gains from their investments, market operators said.
As a result of investors’ cautious mood, all the sectors except bank slumped mainly due to the jittery share sales.
Among the prominent sectors, engineering, telecommunications, pharmaceuticals and energy slumped by 2.5 per cent, 2.16 per cent, 2.1 per cent and 0.1 per cent respectively.
All the top 10 market capitalisation leaders except Islami Bank declined while slumping share prices of Grameenphone, Square Pharmaceuticals and BRAC Bank made the scrips the worst losers in last week.
On the other hand, in line with the previous weeks, the share prices of banks continued to surge last week (2.9 per cent) as investors found them as one of the best and safer places to inject their fund.
The daily average turnover on the bourse also declined by 0.96 per cent to Tk 1,221.04 crore compared with that of Tk 1,232.85 crore in the previous week.
‘Though the week started with its previous gaining momentum with heavy buoyancy on mostly bank sector issues, last two sessions experienced price correction as investors went for profit booking,’ said EBL Securities in its weekly market review.
Of the 334 companies and mutual funds traded, 236 declined, 83 advanced, and 15 remained unchanged.
DS30, the blue chip index of the DSE, dropped by 1.24 per cent, or 27.65 points, to close at 2,197.54 points over the week.
The Shariah index of the bourse, DSES, plunged by 1.69 per cent, or 23.39 points, to close at 1,361.89 points.
National Bank led the turnover chart in the week with its shares worth Tk 273.15 crore changing hands.
First Security Islami Bank, IFIC Bank, Al-Arafah Islami Bank, LankaBangla Finance, Bangladesh Export Import Company, City Bank, Summit Power, Uttara Bank and Prime Bank were the others turnover leaders.
Rupali Bank gained the most during the week with a 16.50-per cent increase, while Ratanpur Steel Re-Rolling Mills was the worst loser, shedding 18.50 per cent.

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