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Stocks pause six-day rally on profit taking

DSE turnover nearly touches Tk 23b mark

FE REPORT | September 05, 2022 00:00:00

Stocks slipped into the red on Sunday, snapping a six-day rally, but turnover jumped to nearly Tk 23 billion mark after 11 months, as investors were active on both sides of the trading fence.

The market opened higher in the morning and the benchmark equity index soared 75 points in the first 95 minutes of trading. But all the early gains were wiped out as the session progressed amid profit-booking tendency among the investors.

At the end of the session, DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), settled 18.67 points or 0.28 per cent lower at 6,489.94, after rising 228 points in the past six trading days.

Turnover, a crucial indicator of the market, clocked in at Tk 22.96 billion on the premier bourse, up 22 per cent from the previous day's mark of Tk 18.89 billion. It happens to be the biggest single-day transaction since October 7, 2021, when the turnover reached a record Tk 24.97 billion.

Market analysts said stocks fell marginally as investors tried to lock in profits from quick-gaining stocks following the recent price surge.

The market witnessed some natural correction, after a six-day rally, creating some scope for investors to pour fresh funds and reposition their investment, said a merchant banker.

The cautious investors booked profit, particularly in banking, cement, telecom, textile and financial institutions stocks to make some profits, he said.

However, the optimistic investors remained active in the market, putting fresh funds in stocks whose financial year ended in June expecting strong earnings and dividend declarations ahead.

The stocks rally halted as investors went on to profit-booking, taking advantage of the recent bullish trend in the market, said EBL Securities.

The DS30 index, comprising blue chips, also dropped 2.07 points to finish at 2,303. However, the DSE Shariah Index (DSES) gained 1.16 points to close at 1,410.

Most of the sectors witnessed corrections. Among the major sectors, textile saw the highest correction of 2.20 per cent, followed by cement with 1.80 per cent, banking 0.40 per cent, telecom 0.20 per cent and financial institutions 0.10 per cent.

On the other hand, power, food and engineering sectors gained 1.10 per cent, 0.50 per cent and 0.10 per cent.

The engineering sector dominated the turnover chart, capturing 16 per cent of the day's total turnover, followed by pharmaceuticals (13 per cent) and textile (11 per cent).

Losers took a strong lead over the gainers, as out of 375 issues traded, 217 closed lower, 95 higher and 63 others remained unchanged on the DSE trading floor.

The Chittagong Stock Exchange (CSE) also ended lower after the six-day rally with the CSE All Share Price Index (CASPI) losing 74 points to settle at 19,081 and its Selective Categories Index (CSCX) falling 44 points to close at 11,437.

Of the issues traded, 166 declined, 93 advanced and 42 issues remained unchanged.

The port-city bourse traded 10.75 million shares and mutual fund units with a turnover value of Tk 359 million.

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