After hitting record high, the key index of the premier bourse witnessed a modest correction Monday as cautious investors opted for profit booking on quick-gaining stocks.
Dealers said the investors sold shares and mutual fund units to bag some profits on issues that saw substantial gains in the past few sessions, taking the market in the red zone.
"Stocks faced correction as retail investors went for booking profits, which triggered a selling pressure in the market," said an analyst at a leading brokerage firm.
The retail investors sold large-cap shares, especially from bank, telecom, financial institutions, and food & allied sectors, he added.
Meanwhile, the DSE served a show-case notice on five listed companies Sunday as share prices of these companies gained in between 5.26 per cent and 37 per cent in just one month. The five companies are: Dulamia Cotton, Peoples Leasing, Rahima Food, Saiham Cotton and United Power.
The companies also informed the premier bourse Monday that they have no price sensitive information for recent 'abnormal' price hike.
The market opened with a positive trend and first half of trading session saw volatility, but later half of the session went down steadily, finally closed more than 20 points lower.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 20.29 points or 0.34 per cent to settle at 5,824, after hitting record high since its inception on January 27, 2013, in the previous day.
IDLC Investment, a merchant bank, said after making it to the historical high, broad index DSEX fell by more than 20 points on profit booking pressure.
The merchant bank noted that activities maintained its momentum, generating a total turnover of Tk 11.5 billion with engineering and textile were at the forefront of investors' interest.
However, almost all the major sectors lost, with exception of a few closing flat or gaining very marginally. Miscellaneous sector also lost 1.0 per cent, as sector mega cap Berger Paints fell on disappointing first quarter earnings declaration, the merchant bank said.
The two other indices also edged lower. The DS30 index, comprising blue chips fell 0.33 points or 0.01 per cent to finish at 2,133. The DSE Shariah Index (DSES) lost 3.27 points or 0.25 per cent to close at 1,324.
Turnover, the important indicator of the market, stood at Tk 11.47 billion, which was 9.18 per cent lower than the previous day's turnover of Tk 12.63 billion.
Engineering sector emerged as turnover leader, capturing nearly 17 per cent, followed by textile with 16 per cent and fuel & power 12 per cent.
"Stocks observed a downbeat session amid choppy trading as investors preferred to book quick-gain on the last few sessions price surge," commented International Leasing Securities, a stockbroker, in its regular market analysis.
The stockbroker noted that the trading session started with positive tune but failed to sustain as profit booking sell pressure forced the bourse to end in red zone.
"Selling of shares mostly from large-cap stocks, from ceramic, textile, bank and telecom sectors contributed in the downturn of indices," the stockbroker said.
Large-cap sectors showed mostly negative performance. Banks posted the highest loss of 0.58 per cent, followed by telecom with 0.39 per cent and non-bank financial institutions 0.24 per cent.
Food & allied, pharmaceuticals, engineering and fuel & power also lost 0.11 per cent, 0.06 per cent, 0.05 per cent and 0.03 per cent respectively.
The port city bourse, the Chittagong Stock Exchange (CSE), also closed lower with its Selective Categories Index - CSCX - losing more than 47 points to settle at 10,905.
Losers beat gainers as 166 issues closed lower, 79 closed higher and 24 remained unchanged on the CSE.
The port city bourse traded 21.59 million shares and mutual fund units' worth Tk 635 million in turnover.
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Stocks fall on profit booking
FE Report | Published: July 18, 2017 00:00:00 | Updated: February 01, 2018 00:00:00
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