Stocks fall on profit booking
The stock market fell yesterday as investors booked profits following the rise in the prices aided by the steady run of the key index.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell 19 points, or 0.32 per cent, to close the day at 6,105.
The investors are cashing profits to benefit from the higher position of the index, said a stockbroker.
On Monday, the index rose to a three-and-a-half-year high of 6,125, according to DSE data.
"People take profit when the index rises, and it is a good sign," the stockbroker said, adding that the profit booking tendency created opportunities for others.
There were no sellers for some stocks almost throughout the day, as their demand was high, although they had informed the DSE that there was no undisclosed information.
For instance, there were no sellers of Bangladesh Monospool Paper Manufacturing, Tamijuddin Textile, Malek Spinning, Dragon Sweater, and Maksons Spinning.
There was no fundamental reason for the abnormal price hike of the stocks. Even many good stocks are trading at a lower level, said a merchant banker.
Such price surge is creating risks for the stock investors who have invested in these companies, he added.
Turnover, an important indicator of the market, decreased 1.27 per cent to Tk 2,043 crore.
On the DSE, 134 stocks rose, 204 declined, and 31 remained unchanged.
Bangladesh Monospool Paper Manufacturing topped the gainers' list that rose 10 per cent, followed by Tamijuddin Textile, Malek Spinning, Square Textile, and Prime Textile.
Pioneer Insurance was the most traded stock with shares worth Tk 147 crore changing hands, followed by Beximco Ltd, Maksons Spinning, National Feed Mills, and Orion Pharmaceuticals.
Prime Islami Life Insurance shed the most, declining 17.1 per cent. Sea Pearl Beach Resort & Spa, Reliance Insurance, Green Delta Insurance, and Fareast Life Insurance also witnessed major losses.
The port city bourse soared. The CASPI, the general index of the Chittagong Stock Exchange, rose 178 points to 17,762.
Among 309 stocks traded, 195 advanced, 96 dropped, and 18 remained unchanged.