Stocks end five-day bull run on profit taking

Staff Correspondent | Published: 00:05, Nov 14,2017 | Updated: 00:22, Nov 14,2017

 
 

Dhaka stocks on Monday inched down, ending a five-day bull run, as some investors went for profit-booking selling of shares, especially bank scrips.
Share prices of two banks, AB Bank and Shahjalal Islami Bank, continued to gain in rumour-driven buy pressure while Grameenphone kept surging ahead of year-end financial closure.
The key index of Dhaka Stock Exchange, DSEX, edged down by 0.11 per cent or 7.16 points to close at 6,216.61 points on Monday after 151-points gain in the previous five sessions.
In line with the previous session’s uptrend, the market was vibrant in the beginning of trading on Monday, but moved downward soon after when some of the investors went for profit-taking sales following the recent price surge, market operators said.
Banking shares, which had gained most during the recent surge, led the fall of the market, declining by 0.64 per cent on Monday.
Out of the 30 traded bank scrips, 22 declined, seven advanced and one remained unchanged on Monday.
AB Bank and Shahjalal Islami Bank, however, continued to surge on Monday. AB Bank rose by more than 3 per cent on Monday after an almost 10-per cent gain in the previous session. Shahjalal Islami Bank increased by 4 per cent on Monday.
Market operators said that some of the investors were buying AB Bank and SJIBL shares amid rumours that the Chittagong-based S Alam Group would take control of the banks after the Group had taken control of a number of other listed banks through hostile takeovers.
S Alam Group recently bought significant amount of shares of Islami Bank and Social Islami Bank through different companies linked with the Group and took control of the boards of the banks.
Dhaka Stock Exchange officials, however, could not confirm whether any company linked with S Alam Group was buying shares of AB Bank and Shahjalal Islami Bank.
Market operators said that investors were buying shares of the banks based on the rumours hoping that if S Alam Group goes for the banks, the Group’s buying pressure would lead to the rise in the share prices of the banks.
Economists, however, said that such type of hostile takeover of banks by a single business group, which already controls up to nine banks, would ultimately result in a demise of the banks.
On the other hand, the share prices of Grameenphone continued to surge by 4.78 per cent on Monday as investors were hoping for better financial performance of the mobile company at the year-end.
Surge in share prices of Investment Corporation of Bangladesh, Olympic Industries and British American Tobacco also eased the volatility of the market.
Besides the banking sector, the average share prices of cement, textiles and pharmaceuticals sectors declined by 0.6 per cent, 0.5 per cent and 0.3 per cent respectively.
Of the 333 companies and mutual funds traded, 186 declined, 106 advanced and 40 remained unchanged.
Turnover on the bourse declined to Tk 903.38 crore compared with that of Tk 983.48 crore in the previous session.
‘The prime bourse of the country settled in red zone amid profit booking tendency from the investors,’ said EBL Securities in its daily market commentary.
‘The core index opened high but within an hour upbeat note did not sustain as investors opted for realising gain from their portfolios,’ it said.
DS30, the blue-chip index, however, gained 0.11 per cent or 2.53 points, to finish at 2,261.87 points.
The Shariah index, DSES, added 0.49 per cent, or 6.58 points, to close at 1,349.48 points.
IFAD Autos led the turnover chart on the day with its shares worth Tk 51.05 crore changing hands.
Dhaka Bank, AB Bank, Grameenphone, City Bank, Shahjalal Islami Bank, BRAC Bank, LankaBangla Finance, Southeast Bank and Square Pharmaceuticals were other turnover leaders.
Pharma Aids increased the most with an 8.29-per cent rise in its share prices, while Golden Son was the worst sufferer of the day, shedding 7.09 per cent. 

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