Stocks dip on profit taking after 3-day surge
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Dhaka stocks on Monday dropped sharply as investors went for selling shares to book short-term profits after a three-day surge.
DSEX, the core index of Dhaka Stock Exchange, slumped by 0.98 per cent, or 52.82 points, to close at 5,342.08 points on Monday.
The key index had gained 219 points in the previous three sessions amid the government’s moves to revive the market following a 13-week bear run and street protests by investors.
Trading on the bourse began on Monday with a slight gain in DSEX in the opening few minutes but later dropped sharply amid sell-offs.
Market operators said many of the investors went for booking short-term profits, taking the opportunity of the surges in the previous three days.
Besides, some of the investors, who still remained cautious because of the recent rout, went for selling shares ahead of Ramadan, the fasting month for Muslims, which begins today, they said. Typically trading slows a bit on the bourse during Ramadan, said a stockbroker.
He, however, said that it would need few more trading sessions to assess the impact of government incentives on trading during Ramadan.
The government and the market regulator, Bangladesh Securities and Exchange Commission, in last few days announced a number of measures, including approval of Tk 856 crore in loans for the small-scale investors affected by the recent plunges through Investment Corporation of Bangladesh and suspension of taking initial public offering applications until changes to the related rules are made.
Prime minister Sheikh Hasina advised investors not to get panicked while finance minister AHM Mustafa Kamal assured that all the problems prevailing at the stock market would be solved one by one. Kamal also said that there would be some incentives for the capital market in the upcoming national budget.
EBL securities in its daily market update said, ‘After a straight three days of upward rally the capital bourse of the country observed a session of profit booking tendency and edged in red zone today [Monday].’
‘The bourse opened higher but failed to sustain morning buoyancy after half an hour of the session as most of the investors preferred booking profits to taking new positions ahead of Ramadan.’
However, investors exerted selling pressure targeting sector specific stocks especially from fuel and power, telecommunication and bank sectors, it said. Out of the 345 issues traded on the day, 258 declined and 27 remained unchanged while only 60 advanced. Turnover on the bourse declined to Tk 467.34 crore on Monday from Tk 535.95 crore on Sunday.
DSE blue-chip index DS30 dropped by 1.07 per cent, or 20.44 points, to close at 1,881.21 points. Shariah index DSES lost 0.56 per cent, or 6.97 points, to finish at 1,233.64 points.
Fortune Shoes led the chart of turnover leaders with its shares worth Tk 35.93 crore changing hands on the day.
Esquire Knit Composite, National Polymer, Legacy Footwear, Monno Ceramic Industries, National Tubes, Genex Infosys, Bangladesh Shipping Corporation, BRAC Bank and United Power Generation Company were the other turnover leaders. SS Steel Mills gained the most on the day with a 9.8-per cent increase in its share prices while Tunghai Knitting and Dyeing was the worst loser, shedding 8.9 per cent.
Source: http://www.newagebd.net
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