DSE witnesses profit-taking

FE Report

The market ended flat Sunday with turnover declined slightly as investors followed 'wait-and-see' policy amid profit taking tendency for the second consecutive session.

The market opened with a positive mood, gaining 94 points within first one hour but rest of the session it declined steadily as investors took modest profit on some sectors, eventually ended flat.

The General Index of the Dhaka Stock Exchange (DGEN) ended at 4,427.99 points, shedding only 1.63 points or 0.03 per cent.

The other two indices also ended red --- the DSEX went down most by 43.76 points or 1.03 per cent to close at 4,170.15 points while the blue chip index DS30 lost 2.78 points or 0.17 per cent to close at 1,550.21 points.

Total turnover on DSE declined slightly to Tk 6.60 billion, a decrease of 3.64 per cent from previous session's value of Tk 6.85 billion.

"Profit taking tendency further drag down the indices, mainly later part of the day's session. Resultantly, the bourse ended red; with free float based index DSEX fall by 43.77 points whereas, DGEN fall by only 1.64 points," commented IDLC Investments, in its regular market analysis.

Investors' participation decreased slightly as their pursuance of 'Wait and See' strategy continued, the merchant bank said.

However, market seemed a bit 'indecisive' like earlier session to see whether DGEN crosses 4,500 points, said the merchant bank.

Investors mostly focused on fuel and power, telecommunications and pharmaceuticals sectors, accounted for 20.81 per cent, 11.42 per cent and 10.27 per cent market turnover respectively, the merchant bank added.

"Profit harvesting by investors and fiscal year ending may have contributed to the decline of the market. Overall turnover remained healthier," stated LankaBangla Securities.

"Market is facing correction sporadically as different types of packages have delayed the process. As a consequence, some sectors are facing correction at different sessions," according to Zenith Investments.

However, improved liquidity position has been contributing in absorbing the pressure of correction pretty well. Turnover is still in a very strong position which is core strength to the market. Some scrip got highly overpriced during the hike of the last week and those were the ones losing most Sunday, the Zenith analysis said.

The losers took a strong lead over the gainers as out of 286 issues traded, 242 declined, 36 advanced and eight remained unchanged in the primer bourse.

Activities decreased in the prime bourse, where volume and trade were down by 16.91 per cent and 7.03 per cent respectively. A total of 0.149 trades were executed with 135.76 million securities of trading volume.
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