Stocks end six-day gaining streak

The stock market index dropped yesterday, ending a six-day gaining streak, thanks to a profit booking trend among investors.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), slid 32 points, or 0.46 per cent, to 7,073.

Turnover at the Dhaka bourse also fell 7 per cent, to 1,482 crore.

"As the stock market rose for the past few days, investors are opting to take their profits," a stockbroker said, adding that this is a normal trend.

When investors take profits, then it makes the market more efficient in two ways.

The first is by creating a chance for others to invest and the second is that it fosters confidence among investors, the broker said.

Union Insurance topped the gainers list, rising 10 per cent, followed by Fu-Wang Food, Asia Insurance, Apex Footwear, and Bangladesh Lamps.

Meghna Pet Industries shed the most, losing 7.6 per cent, followed by Padma Oil, Global Heavy Chemicals, Tamijuddin Textiles, and Bangladesh Shipping Corporation.

Stocks of Beximco traded the most with Tk 156 crore followed by Bangladesh Shipping Corporation, Power Grid, Asia Insurance, and Apex Footwear.

At the DSE, the devaluation of Walton Hi-tech Industries, Robi Axiata, LafargeHolcim Bangladesh, Square Pharmaceuticals, and Beximco Ltd contributed to the fall of the index as they collectively dropped 30 points, according to amarstock.com, a stock market related data provider.

Among the traded stocks, 102 advanced, 248 declined and 28 remained the same.

There was an upsurge in share prices in the early hours of the day but it somehow slowed down by mid-session as the investors' sell off was observed across major sectors due to fears of another lockdown amid increasing coronavirus cases, said International Leasing Securities in its daily market review.

As a result, the country's premier bourse endured a setback as it reverted after a six-days rise, it added.

Among major sectors, ceramics, food and allied and general insurance achieved the highest price appreciation while textiles, travel and leisure, and cement witnessed the most correction, according to the brokerage house.

Investor activity was mostly concentrated on miscellaneous, pharmaceuticals, and the fuel and power sectors, it said.

The Chittagong Stock Exchange (CSE) also dropped yesterday. The CASPI, the main index of the port city bourse, plunged 115 points, or 0.55 per cent, to 20,702.

Among 304 traded stocks, 75 rose, 199 fell and 30 remained unchanged.

Investors are rearranging their stocks considering the earnings of listed companies who are providing half-yearly profits disclosures, according to a merchant banker.

Many June-closing companies are now disclosing their half-yearly financials, he said, adding that many companies reported good performances despite a fall in profits.

For instance, Walton was the top contributor to index's drop yesterday, accounting for 9 points alone after logging a huge drop in profits in the first half of the current financial year.