Stocks fall amid profit booking
The stock market took a dip yesterday due the profit booking tendency among investors.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), dropped 62 points, or 1.03 per cent, to 5,975.
Investors are taking their profits as the market has remained bullish for the last couple of weeks, according to a stock broker.
"So, the index fell," he said.
The DSEX spiralled around 10 per cent in the last one month -- the highest in the past three-and-a-half years. "That's why the profit booking was expected," the broker said, adding that it is good for the market when people take profits because then they get the confidence to invest more.
Turnover, another important indicator of the market, plunged 21 per cent to Tk 2,083 crore yesterday.
At the DSE, 98 stocks advanced, 242 fell and 27 remained unchanged.
The market witnessed massive fall in sectors that jumped at higher rates in recent months.
Among the major sectors, engineering, services & real estate, and tannery experienced price appreciation while bank, insurance, mutual fund, and cement faced correction.
The life insurance sector dropped 2.29 per cent while banks fell 1.78 per cent, cement 2.09 per cent, and mutual fund 1.37 per cent, according to data from UCB Stock Brokerage.
In the last few days, these sectors had topped the gainers' list as most of the related companies' stocks rose by 7 to 18 per cent, according to DSE data.
Stocks of Beximco Limited and Grameenphone were the top contributors to the plunge as they collectively brought the DSEX down by 31 points, as per data from amarstock.com, a market analysis website.
National Housing Finance Corporation topped the gainers' list, rising 10 per cent, followed by Desh Garments, Pioneer Insurance, Lub-rref Bangladesh and Aman Cotton Fibrous. Stocks of Beximco traded the most with Tk 247 crore, followed by LankaBangla Finance, Fortune Shoes, Pioneer Insurance and Saif Powertec.
First Security Islami Bank shed the most, losing 12.5 per cent followed by Exim Bank, Standard Bank, Beximco and CAPM IBBL Mutual Fund.
The Chittagong Stock Exchange (CSE) also dropped as the CASPI, the general index of the port city bourse, fell by 189 points, or 1.08 per cent, to 17,317. Among its 300 traded stocks, 86 rose, 191 fell and 23 remained unchanged.