Stocks continue to fall amid profit taking

The stock market continued to fall for a second consecutive day yesterday owing to a profit booking tendency prevailing among investors.

Despite this, companies whose performances were not up to the mark remained bullish.

Meanwhile, the Bangladesh Securities and Exchange Commission (BSEC) decided to extend trading hours by an hour to 2:00pm from today in tune with that of banks.

Trade on a normal day ends at 2:30pm.

From today, the pre-opening session begins at 9:45am and the post-closing session ends at 2:15pm, said a BSEC press release.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), nosedived 19.35 points, or 0.31 per cent to 6,177.21.

Investors are raking in profits from the market as the prime index had risen to its highest point in three-and-a-half years, said a merchant banker.

Last Monday, the DSE's index soared to 6,219. When the market opened on a rising trend yesterday, many people started availing profits and the rising trend proves that investors had confidence on the market, he said.

If such confidence continues to prevail, the market will remain healthy, said the merchant banker, adding that the rise of companies whose performance was not that good was not a good sign.

Among the top 10 gainers, only two were from the "A" category, meaning they had provided more than 10 per cent dividends last year.

Another four were from the "Z" category, meaning they had either failed to provide dividends or closed production.

Three more were from the "B" category, meaning their dividend payout was less than 10 per cent.

The remaining one was a newly listed company. Investors should be cautious because companies whose performances were not that good could end up eroding their investments, added the merchant banker.

Turnover, another important indicator of the market, dropped 11 per cent to Tk 1,577 crore while it was Tk 1,789 crore a day earlier.

At the DSE, 142 stocks advanced, 205 declined and 25 remained unchanged.

The Paper Processing and Packaging topped the gainers' list, rising 10 per cent, followed by Bangladesh Industrial Finance Company, Tamijuddin Textile Mills, Information Services Network, and Sonali Life Insurance.

Stock of Beximco were traded the most, worth Tk 162 crore, followed by LafargeHolcim Bangladesh, Beximco Pharmaceuticals, National Feed Mills and Keya Cosmetics.

Alltex Industry shed the most, falling 7.80 per cent, followed by Desh Garments, FAR Chemical Industries, First Finance and Tallu Spinning Mills.

The port city bourse also fell today. The CASPI, the general index of Chittagong Stock Exchange, nosedived 74 points, or 0.41 per cent, to 17,881. Among 307 stocks to witness trade, 110 advanced, 170 dropped and 27 remained unchanged.