Stocks break week-long rally

FE Report | Published: January 21, 2014 00:00:00 | Updated: November 30, 2026 06:01:00

Stocks saw marginal correction Monday, breaking a week-long rally as investors booked profit from their previous purchase.
The market started with a positive note in the morning, but couldn't sustain it peace till the end of the day amid selling pressure, eventually ended into negative at closed.
The prime index of the Dhaka Stock Exchange (DSE) - DSEX ended at 4,550.47 points, shedding 14.92 points or 0.32 per cent from previous session. In the last eight consecutive sessions, DSEX added around 269 points.
The DS30 index, comprising blue chips also lost 2.82 points or 0.17 per cent to close at 1,609.27 points.
A Shariah-based index named DSES was launched Monday with a base point of 1,000 points to facilitate Islamic fund investors. The DSES also lost by 1.22 points or 0.13 per cent to close at 941.3 points.
The total turnover on DSE stood at Tk 6.10 billion, registering 13.7 per cent decline over the previous session's turnover value of Tk 7.08 billion.
"Soon after opening in the positive note, market slipped into red zone Monday posting a marginal correction after rallying for eight straight trading sessions," said LankaBangla Securities, a leading stock broker.
"Stocks' price rolled over a bit under the presence of sell pressure in the financial and fuel & power sector," the stock broker said.
"After a weeklong rally in index, market showed up some natural correction, creating some scope for investors to churn their portfolios," said the stock broker.
"The market somewhat slowed its pace, as the index gravitated towards negativity although the volume was remarkably at a satisfied level," commented Zenith Investments.
The damage of the index is unclear, but there was heavy sector wise rotation as the Cement, Travel & leisure and Insurance sector showed radical performance despite the day's downtrend, the Zenith analysis said.
"It is not unusual for the market to hit breaks after continues acceleration".
"Investors making loss on trades needs to have patient as the sector wise rotation is very much prevalent at this moment, which will more or less provide opportunity of investors in almost all sectors," observed the Zenith Investments.
"A flat session passed for DSEX and DS30 with turnover reverting to Tk 6.0 billion level," IDLC Investments said.
In the mean time, although European Union's assurance mitigated worries over GSP issue, most stocks from textile sector stayed negative. However, thanks to sector giant Square Textile which gained 3.24 per cent alone, the sector ended positive with 0.22 per cent gain, said the merchant bank.
Meanwhile, fuel & power and bank encountered profit booking after series of positive sessions.
Activities centered mainly on fuel & power and engineering sector, accounted for 13 per cent and 12 per cent of total market turnover, the merchant bank observed.
Losers beat gainers 133 to 124, with 35 issues closed unchanged on the DSE floor.
Bank, NBFIs, fuel & power and engineering sector were in sellers' interest losing 1.0 per cent, 0.6 per cent, 1.2 per cent and 0.8 per cent market capitalization respectively.
Cement, mutual fund and textile sector gained market capitalization by 1.4 per cent, 0.3 per cent and 0.1 per cent respectively.
Activities decreased in the major bourse (DSE) where volume and trade were down 10.43 per cent and 8.74 per cent respectively. A total of 0.137 million trades were executed with 139.69 million shares and mutual fund units were trading volume.
The market capitalization of the DSE stood at Tk 2,780.16 billion against Tk 2,788.88 billion in the previous session.
United Airways dominated the top turnover chart with shares worth Tk 299.06 million changing hands followed by Summit Purbanchol Power, UCBL, Padma Oil and Meghna Petroleum.
Pragati Life Insurance was the day's highest gainer, posting a rise of 9.69 per cent while Meghna Condensed Milk was the day's worst losers, slumping by 9.45 per cent.
The Chittagong Stock Exchange (CSE) also closed lower, with its Selective Categories Index - CSCX lost 39.02 points to close at 8,931.11 points.
Losers beat gainers 120 to 84, with 18 issues remaining unchanged at the port city bourse that traded 16.36 million shares and mutual fund units, turnover value of Tk 577.63 million.