Stocks slip back into red on profit taking

Babul Barman

After two weeks of gaining streak, the bourses faced correction last week with turnover rising significantly, as the investors went for profit booking spree in the later part of the week.

The market witnessed four trading sessions as Thursday was public holiday on the occasion of Buddha Purnima. Among them, two sessions gained marginally, while remaining two sessions retraced.

Week-on-week the General Index of the Dhaka Stock Exchange (DGEN) shed marginally by 7.92 points or 0.20 per cent to close at 3,974.15 as the investors went for profit taking spree in the last two sessions.

The DSEX went down by 11.70 points or 0.31 per cent to close at 3,762.09. However, the blue chip index DS30 gained 4.45 points or 0.32 per cent to close at 1,387.52.

The Chittagong Stock Exchange (CSE) also ended slightly lower last week with the Selective Category Index of the CSE dropping 34.38 points or 0.46 per cent to close at 7,410.13.

The total DSE turnover for the week stood at Tk 17.40 billion, which was 2.55 per cent lower than the last week's total turnover value of Tk 17.85 billion.

However, based on the daily turnover basis, the week performed better than the last week. The daily average turnover for the week stood at Tk 4.35 billion compared to 3.57 billion in the last week, which marked an increase of 22 per cent over the week.

"After a series of bullish sessions, this week underwent through a profit taking," commented LankaBangla Securities in its weekly market analysis.

"Week started upbeat with positive sentiment pulling up DGEN over 4,000 psychological level after 52-session. The upbeat held onto second session, but rally was slowing down both in terms of indices movement and turnover," commented IDLC Investments in its weekly market analysis.

After reaching a peak of 4,097, DGEN started to decline over surge in profit taking, as an accumulation of roughly 200 points in DGEN also created significant gains amid stocks during the rally, the IDLC Investments said.

Finally, with political situations getting slightly heated up, and doubts on further rally, profit booking spree put the market at backtrack, the IDLC analysis added.

"Certainly market has slightly become gloomy and cast shadow over investor optimism for the last two sessions. But it truly is just a natural correction that stayed for a while. Such long correction appeared as because the recovery was long as well," according to Zenith Investments.

Losers took a strong lead over the gainers as out of 288 issues traded during the week at DSE, 200 declined, 76 advanced and 12 remained unchanged.

All the major sectors ended in red except telecommunications and banks which gained 3.82 per cent and 0.82 per cent respectively. Whereas, NBFIs lost the highest 3.35 per cent, followed by fuel and power 2.06 per cent and pharmaceuticals lost 1.49 per cent.

The market capitalisation of the DSE went down slightly by 0.25 per cent as it was Tk 2,332.04 billion at the opening day of the week, while it closed at Tk 2,326.29 billion.

Two listed companies--Janata Insurance and Bangladesh Industrial Finance Corporation (BIFC) made their corporate declarations during the week. Janata Insurance recommended 10 per cent cash dividend, while BIFC recommended 5 per cent cash dividend.

Orion Pharma was the week's most traded stocks with shares worth Tk 1.15 billion changing hands. It was followed by United Airways, Summit Purbanchol Power, BSCL, Unique Hotel and Resorts, Aamra Technologies, Golden Harvest Agro Industries, Beximco, Olympic and RN Spinning.

United Insurance was the week's highest gainer posting a rise of 22.57 per cent followed by Prime Insurance, BD Finance, Kay and Que, Premier Leasing, Al-Haj Textile, Sandhani Life Insurance, Heidelberg Cement, Pubali Bank and Pioneer Insurance.

The week's worst losers included Sonarbangla Insurance, Jamuna Bank, Shinepukur Ceramic, Purabi General Insurance, GBB Power, Asia Insurance, Beximco Pharma, Paramount Insurance, Bexmico and Beximco Synthetics.
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