Stocks snap 3-day rally

Dhaka stocks closed marginally lower yesterday, ending a three-day rally amid profit booking by investors from textile and banking shares.

The market opened on a high note with a buying mood driving the prime index DSEX to hit 6,923 points for a brief period at Dhaka Stock Exchange, the prime bourse.

Later, the market declined as investors went on to cash in on gains from the gradual increase in stocks over the last one month.

They were buoyed by increased fund flow from individuals as deposits rates in banks has been low while sluggish demand for loans also encouraged banks to invest in the capital market.

The DSEX closed at 6878.75, down 5.92 points or 0.08 per cent yesterday from that the previous day. Two other indexes, the blue chip DS-30 index and the Shariah DSES index, also ended lower. Most of indices of Chittagong Stock Exchange declined yesterday.

"Market has been on the upward trend over the last couple of weeks. As such, a section of investors have booked profits, particularly form textiles and banking stocks," said Mir Ariful Islam, managing director of Sandhani Asset Management.

In a market review, International Leasing Securities said the market started on an optimistic tune as the buoyant investors continued their buying spree with sector-specific stocks.

But a profit booking selling pressure at the last hour in some major sectors has contributed to the plunge in indices, it said.

"However, the buyers' interest remained in financial institutions, general insurance, life insurance and telecom sector stocks," it said.

Turnover declined 6.95 per cent to Tk 2,570 crore at the DSE as some investors stayed on the sidelines to observe the market corrections.

Yet, the turnover remained at an average of Tk 2,586 crore over the last 15 consecutive sessions. The top 10 stocks to be traded captured around 22 per cent of the total trade. Both the gainers' and losers' lists comprised small cap stocks, said International Leasing Securities.

The investors' activity was mostly centred on financial institutions, general insurance and textile sectors, it said.

"The NBFI (non-bank financial institutions) booked the highest gain of 2.51 per cent followed by telecommunication, food & allied," said Brac EPL Brokerage in its update.

Engineering experienced the highest loss followed by fuel & power, bank and pharmaceuticals, it said.

Bangladesh Export Import Company was the most traded share with a turnover of Tk 87.3 crore, it added.