Stocks snap gaining streak

Stocks broke out of a gaining streak of four days while turnover at the market dropped 30 per cent yesterday. 

The DSEX, the benchmark index of the premier bourse in Bangladesh, lost 17 points or 0.26 per cent, to reach 6,359 yesterday.

Turnover at Dhaka Stock Exchange (DSE) plunged 30 per cent to Tk 654 crore. It was Tk 937 crore a day earlier.

The short-term profit-booking tendency of cautious investors brought down the broad index, said International Leasing Securities in its daily market review.

Meanwhile, the central bank increased the repo rate by 50 basis points, which may adversely impact the money flow to the capital market, therefore the index dropped, it said.

Investors' participation was significantly lower in the market, so the turnover decreased, it added.

Meanwhile, both the DS30, the blue chip index, and DSES, the Shariah-based index, lost 4.38 points and 2.03 points respectively.

As the index was undergoing a rising trend for the previous four days, some investors tried to rake in profits and that is why the index dropped, said a merchant banker preferring anonymity.

Moreover, recent steps of the central bank also encouraged them to sell shares apprehending a cash crunch in the stock market, he said.

Out of 382 issues traded during the session, 219 declined, 120 advanced and 43 remained unchanged.

Among the sectors, paper rose 3.8 per cent, services 2.1 per cent and IT 1.5 per cent, whereas tannery dropped 1.4 per cent, ceramic 1 per cent and banks 0.8 per cent.

Based on the turnover, investors' activities were mainly focused on the textile sector, accounting for 11 per cent of the day's total turnover, followed by fuel & power (9.6 per cent) and miscellaneous (9.4 per cent).

Robi Axiata gained the most, 9.96 per cent. Meghna Insurance Company, Shyampur Sugar Mills, Bangladesh Thai Aluminium, and Zeal Bangla Sugar Mills were also in the gainers' list.

Fu Wang Food shed the most, dropping 2 per cent. Other that lost the most were Paper Processing & Packaging, Alltex Industries, Prime Bank and Tamijuddin Textile Mills.

Intraco Refueling Stations became the most traded stock, with shares worth Tk 36 crore changing hands, followed by Sonali Paper & Board Mills, Beximco, IPDC Finance and Robi Axiata.