Profit-booking makes DSE trading down


FE Report

The last trading session of the fiscal year 2012-13 ended lower Sunday with turnover dipping further as investors expressed concern over the suspension of trade privileges by the United States.

US President Barack Obama announced Thursday the suspension of Generalised System of Preferences (GSP) facility for Bangladesh because of concerns over labour rights and RMG workers safety.

The General Index of the Dhaka Stock Exchange (DGEN) came down bellow 4,300 points psychological level once again and ended at 4,385.76 points, shedding 39.70 points or 0.89 per cent.

The other two indices also ended in red --- the DSEX went down by 44.51 points or 1.07 per cent to close at 4,104.64 points while the blue chip index DS30 lost 15.00 points or 0.96 per cent to close at 1,532.54 points.

The total market turnover of DSE stood at Tk 5.68 billion, a decrease of 11.80 per cent from previous session's value of Tk 6.44 billion.

"Cyclical downbeat continued from the very beginning of the day's session, which represented investors' reaction over different news regarding GSP suspension in recent days," commented IDLC Investments, in its daily market analysis. 

Apparently, profit-booking motive was persistent, which further dragged down the indices, said the merchant bank. 

Turnover got slower during mid-session. Nevertheless, a quick recovery helped the market to show modest participation at the end, the merchant bank said. 

"The day's price correction lured some of the witty participants to take position carefully in lucrative scrips based on the upcoming corporate and earning declarations," the merchant bank added.

Market adopted the gloominess of the current rainy days as the news of cancellation of GSP facilities by the US government marked a direct hit and smoothed the downward rally of the market, stated Zenith Investments. 

"The news of GSP facility cancellation surely had a significant impact on the market but whether the effect would be sustainable is quite questionable," the Zenith analysis said. 

Turnover kept falling although it remained in the 

safe zone. But if the current trend continues then market might face critical liquidity situation again, the Zenith analysis added.

The losers took a modest lead over the gainers as out of 286 issues traded, 161 declined, 105 advanced and 20 remained unchanged in the primer bourse.

Among the major sectors, NBFIs gained 1.29 per cent achieved the highest sectoral gain for the third consecutive session as ICB gained 5.6 per cent alone. 

The rest of the sectors saw decline. Telecommunications lost 2.87 per cent, the most, followed by banks which retraced 1.14 per cent. Pharmaceuticals and fuel and power also went down marginally by 0.24 per cent and 0.18 per cent respectively.

Activities decreased in the prime bourse. A total of 0.126 million trades were executed with 105.73 million securities of trading volume.

The market capitalization of the DSE stood at Tk 2,530.24 billion against Tk 2,548.99 billion in the previous trading session.

Meghna Petroleum became the top traded stocks with shares worth Tk 399.85 million changing hands followed by BSCCL, Padma Oil, Unique Hotel and Resorts and Jamuna Oil.

Mutual funds dominated the top ten gainers chart as five of them featured in the list. JMI Syringes and Medical Devices continued the day's highest gainer, posting a rise of 9.84 per cent while Eastern Housing was the day's worst loser, slumping by 9.96 per cent. 

The Chittagong Stock Exchange (CSE) also ended lower with the Selective Categories Index lost 80.64 points to close at 8,070.48 points.

Meanwhile, trading on the both bourses --- DSE and CSE will remain closed today (Monday) due to bank holiday.
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