Price correction dominates after a long rally

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FE Report
The stock prices witnessed 'correction' in the week ended Thursday as investors cashed in their profits after the rally of the prices that lasted for weeks.
Due to the correction, the market was in a bearish mood in all the five trading days of the week.
All the market barometers-DSE General Index (DGEN), DSE 20 and All Share Price Index or DSI- shed 65.67 points, 36.47 points and 58.81 points respectively.
DGEN, DSE 20 and DSI closed at 2836.32, 2194.66 and 2411.98 respectively.
The market was also affected when institutional investors became cautious while buying some of the over-priced issues.
"The market declined when financial institutions advised their clients not to go for buying some over-priced issues," a DSE source told the FE.
Out of 279 listed issues, only 90 gained, 143 declined, 15 remained unchanged and 31 were not traded.
Trust Bank continued its rally as the top turnover leader with shares worth Tk 671.40 million changing hands, accounting for 6.77 per cent of the week's total turnover.
BRAC Bank, Power Grid, Beximco Pharma, DESCO, Islami Bank, Social Investment Bank, AB Bank, Grameen Mutual Fund and UCBL followed the rally of turnover leaders.
Power sector issue-DESCO- was the top loser with 18.70 per cent decline when the company proposed 25.00 per cent cash dividend for the shareholders much to the disappointment of the investors.
"We expected that the company will at least propose 40 per cent dividend, but they failed to do so," an investor said.
In a big surprise, Al-Haj Textile was the top gainer in the week with a whopping 500 per cent rise as the A-category issue remained non-traded for a long period.
Usmania Glass, Hakkani Pulp & Paper, Jute Spinners, Dulamia Cotton and ICB AMCL Islamic Mutual Fund were the other top gainers with 36 per cent, 34.44 per cent, 32.86 per cent, 30.92 per cent and 24.75 per cent rises against the previous week.
Meanwhile, upbeat investors are taking preparation to go for the buying of two power sector issues -- Jamuna Oil and Meghna Oil -- by disposing of a part of their present stocks.
The listing sub-committee of the DSE in a meeting Wednesday, however, deferred the listing as the bourse sought clarification on the financial statements of the power sector companies.
Jamuna Oil and Meghna Oil will be directly listed on the bourses after the DSE approval in favour of their listing.
"We hope shares worth Tk 2.27 billion of Jamuna Oil, Meghna Oil and Titas Gas will be floated by the end of 2007 and it is creating a strong enthusiasm among the investors," a DSE source told the FE.