Stocks end lower as profit-booking continues
Stocks closed lower yesterday as a profit-booking tendency continues to prevail among investors following a three-day gaining streak.
DSEX, the benchmark index of the Dhaka Stock Exchange, dropped 5.65 points, or 0.10 per cent, to close at 5,511.36 yesterday.
Turnover, an important indicator of the market, plunged 17.5 per cent to Tk 1,159 crore. Market analysts attributed the decline to the investors' profit-booking tendency.
As most stocks rose 15 per cent to 20 per cent, investors are taking their profits. Besides, investors got back their confidence in the market and started investing again, said a top official of a stock brokerage firm.
Investors are also rearranging their portfolios considering performance of the listed companies.
"This is a good sign for a vibrant stock market," the broker said.
Despite a dull day in the market, insurance stocks remain bullish.
Most of the insurance companies' stocks advanced yesterday even though they are overvalued, he added.
At the DSE, 105 stocks advanced, 179 declined and 70 remained unchanged.
Sonar Bangla Insurance topped the gainers list, rising 9.90 per cent, followed by Prime Insurance, Takaful Insurance, Standard Insurance, and Malek Spinning.
Beximco traded the most with Tk 164 crore followed by LafargeHolcim Bangladesh, Robi Axiata, LankaBangla Finance and Beximco Pharmaceuticals.
Uttara Bank shed the most, dropping 11 per cent followed by Delta Spinners, Anlimayarn, Mozaffar Hossain Spinning Mills, and Zahintex Industries.
The Chattogram bourse also fell. CASPI, the general index of the port city bourse, fell 19 points, or 0.12 per cent, to stand at 15,953.