DSEX retreats from record high as banks, GP plunge on profit taking

Staff Correspondent | Published: 00:05, Nov 16,2017 | Updated: 00:33, Nov 16,2017


The key index of Dhaka bourse declined on Wednesday after hitting a record high in the previous session as investors went for profit taking, especially from the large capitalised scrips including banks and Grameenphone after recent gains.
The key index of Dhaka Stock Exchange, DSEX, declined 0.26 per cent or 16.43 points to close at 6,235.71 points on Wednesday after hitting all time high with gaining 35.52 points in the previous session.
In line with previous session, the market began with a bullish momentum from the very beginning of the session that did not sustain for long as investors went for profit taking.
They said that most of the large capitalised scrips surged in recent time that provoked investors to lock in some gains.
After gains in share prices in recent time, BRAC Bank, Eastern Bank and Grameenphone slumped 4.55 per cent, 2.56 per cent and 2.38 per cent respectively that contributed most in sending the market to a negative zone.
Besides them, Social Islami Bank also slumped by 4.5 per cent on the day as investors became jittery over the news report that nine more directors had stepped down from their position at a time after its board chairman, executive committee chairman and managing directors had resigned after S Alam Group took control of the bank recently, stockbrokers said.
The investors apprehended that S Alam group replaced the nine directors who bear linkage with the group that could ruin the bank, they said.
Moreover, the slump in share prices of telecommunication and banks by 2.7 per cent and 1.9 per cent respectively led the day’s volatility after surge in their share prices in recent days.
The market saw a fresh record amid the surge of the two sectors that instigated a section of investors to pocket some profits.
On the other hand, pharmaceuticals, non-bank financial institutions and cement gained 1.6 per cent, 0.7 per cent and 0.5 per cent respectively that saved the market from further fall.
Among the large capitalised scrips, Square Pharmaceuticals, Renata and British American Tobacco increased most after better financial disclosure.
Turnover on the bourse, an important indicator of the investors’ participation, declined to Tk 883.22 crore compared with that of Tk 1,176.91 crore in the previous session.
Of the 325 companies and mutual funds traded, 139 declined, 148 advanced and 38 remained unchanged.
‘The prime bourse of the country observed a correction and edged in red zone,’ said EBL Securities in its daily market commentary.
‘Investors exerted selling pressures on large cap stocks as they opted for profit booking,’ it said.
DS30, the blue-chip index, declined 0.33 per cent or 7.6 points, to finish at 2,270.30 points.
The Shariah index, DSES, however, added 0.42 per cent, or 5.74 points, to close at 1,369.07 points.
Square Pharmaceuticals led the turnover chart on the day with its shares worth Tk 39.95 crore changing hands.
BRAC Bank, FAS Finance, Shahjalal Islami Bank, Grameenphone, LankaBangla Finance, IDLC Finance, BBS Cables, City Bank and Confidence Cement were other turnover leaders.
Eastern Cables increased the most with a 9.94-per cent rise in its share prices, while Rahim Textile was the worst sufferer of the day, shedding 11.40 per cent. 

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