Stocks slip into red on profit booking

FE Report
Stocks slipped into the red Sunday with turnover crossing Tk 12 billion-mark once again on the premier bourse as risk-averse investors booked quick profit, especially on banks.
Market insiders said though the market faced mild correction, investors were active on both sides of trading fence, taking the market turnover above Tk 12 billion after three weeks.
"Stocks posted meager correction as investors sold banking shares to bag quick gain," said an analyst at a leading brokerage firm.
The market started with a positive note and the prime index of the major bourse crossed the 5,600-mark in early trading, but it could not sustain that level as cautious investors booked quick profit on banking issues, ultimately ending 7.65 points lower.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), finished at 5,583, losing 7.65 points or 0.13 per cent over the previous session.
AT Capital Partners, an asset management company, said, "The market put in a choppy session, driven by correction in prices of banking stocks".
Of the 30 listed banks, 23 banks faced correction, three advanced while four remained unchanged on the DSE trading floor on the day.
Turnover, the most important indicator of the market, rose to Tk 12.32 billion, which was 16 per cent higher than the previous day's Tk 10.62 billion.
Overall activities remained confined on, engineering, textile and pharmaceuticals, where they captured 17 per cent, 16 per cent and 15 per cent respectively of the day's total turnover value.
"Stocks witnessed a mild correction after passing a volatile session," said International Leasing Securities, a stockbroker, in its regular market analysis.
The stockbroker noted that the market opened with upbeat vibe but morning optimism reversed in the later hours as risk-averse investors engaged in quick profit booking from sector specific issues.
"Several issues from financial institution, engineering and fuel and power sector enjoyed buoyancy while selling of shares mostly from bank, miscellaneous and food sector contributed to the fall in indices," said the stockbroker.
Top gainers and losers list comprised of mostly small cap stocks whereas the turnover list was dominated by the large caps, said the stockbroker.
Sheltech Brokerager, said, "Following last trading session, the prime index, DSEX, remained volatile throughout the session as banks faced profit taking sell pressure".
However, the non-bank financial institutions, engineering and fuel and power sectors tried to support the market, said the Sheltech Brokerage.
The large-cap sectors showed mixed performance. The non-bank financial institutions posted the highest gain of 2.62 per cent, followed by engineering 0.75 per cent, fuel and power 0.68 per cent, and pharmaceuticals 0.06 per cent.
The heavyweight banking sector witnessed the highest correction of 1.12 per cent, followed by food and allied 0.49 per cent and telecommunication 0.06 per cent.
The losers took a modest lead over the gainers as out of 330 issues traded, 162 closed lower, 131 closed higher and 37 remained unchanged on the DSE trading floor.
Baraka Power dominated the DSE turnover chart for the second session in a row with about 12.73 million shares worth Tk 651 million changing hands, followed by LankaBangla Finance, IFAD Autos, CMC Kamal and AFC Agro Biotech.
CMC Kamal was the day's highest gainer, posting 7.60 per cent gain, while Savar Refcatories was the worst loser, shedding 2.29 per cent.
However, the port city bourse, the Chittagong Stock Exchange (CSE), edged higher with its Selective Categories Index - CSCX - advancing 7.48 points to settle at 10,796.52 points.
Gainers beat losers as 120 issues closed higher, 107 closed lower and 29 remained unchanged on the CSE.
The port city bourse traded 21.78 million shares and mutual fund units' worth over Tk 658 million in turnover.
[email protected]