The prime index of Dhaka Stock Exchange (DSE) plunged on Monday, snapping a five-day winning streak, despite rise of the blue-chip index, amid increased purchase by institutional investors.
The market opened higher in line with the previous session's rally, but sudden sale pressure in the last 30 minutes dragged the prime index down.
DSEX, the prime index of the DSE, plunged by 28.49 points or 0.38 per cent to settle at 7,327, after gaining 119 points in the past five trading days.
However, the blue-chip index, DS30, rose by 23.55 points or 0.85 per cent to close at new peak at 2,765.
As many companies fell by a higher extent, the prime index fell despite the rise of index for blue-chip stocks, said a merchant banker.
A blue-chip refers to an established, stable, and well-recognised corporation. Blue-chip stocks are seen as relatively safer investments, with a proven track record of success and stable growth.
"Investors were attracted to selective good and large-cap stocks instead of low paid-cap stocks in the past few days which is a good sign for the market," he said
Institutional investors are currently active in the market and are buying good stocks. "So, the blue-chip index is rising," said an analyst at a leading brokerage firm adding that the selective blue chip stocks save the market index from a big plunge.
The blue-chip index includes 30 companies such as British American Tobacco, Beximco, Beximco Pharma and Beacon Pharma had a big positive impact on the index on Monday.
However, share prices of 79 per cent traded issues ended lower as out of 376 issues traded, 297 closed lower, only 48 higher and 31 issues remained unchanged on the DSE trading floor.
Turnover, another important indicator of the market, however, rose to nearly one month high and amounted to Tk 27.55 billion on the prime bourse, which was 13 per cent higher than the previous day's tally of Tk 24.39 billion.
It was the highest single-day turnover since September 7, this year, when turnover recorded at Tk 28.66 billion.
"Turnover surged due to profit booking moves by the investors on most of the stocks," said a stockbroker.
Most of the major sectors posted negative performances with general insurance suffered most of 1.90 per cent, followed by power with 1.0 per cent, banking 0.80 per cent, financial institutions 0.60 per cent, engineering 0.40 per cent and telecom 0.30 per cent.
Cement continued to gain backed by LafargeHolcim, followed by miscellaneous riding on Beximco and pharma sector led by Beacon Pharma.
Accordingly, cement sector rose 3.0 per cent, followed by miscellaneous with 1.50 per cent and pharma sector gained 0.30 per cent.
A total number of 339,715 trades were executed in the day's trading session with a trading volume of 578.94 million shares and mutual fund units.
The market capitalisation of the prime bourse stood at Tk 5,820 billion on Monday, down from Tk 5,829 billion in the previous session.
Beximco topped the DSE turnover list after three-break with shares worth Tk 1.76 billion changing hands, closely followed by LafargeHolcim (Tk 1.74 billion), Orion Pharma (TK 1.05 billion), Beximco Pharma (Tk 764 million) and LankaBangla Finance (Tk 721 million).
Orion Infusions was the day's top gainer, posting a 9.82 per cent gain while Shurwid Industries was the worst loser, losing 9.65 per cent.
The Chittagong Stock Exchange (CSE) also ended marginally lower with the CSE All Share Price Index - CASPI -losing 37 points to settle at 21,473 and the Selective Categories Index - CSCX-- shedding 19 points to close at 12,897.
Of the issues traded, 238 declined, 66 advanced and 18 remained unchanged on the CSE trading floor.
The port-city bourse traded 25.77 million shares and mutual fund units with turnover value of Tk 1.15 billion.
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