The opening trading session of the New Year ended slightly higher Monday, with turnover dipping below Tk 4.0 billion-mark, as investors were reluctant to put fresh investment in the market.
Market operators said investors were cautious despite the news that the unaudited operating profits of the country's private commercial banks (PCBs) witnessed a remarkable growth in 2017.
"Operating profit does not indicate the real financial health of a bank. Because, the banks have to make room for provisioning against bad loans and taxes that have to be paid to the government from the profit," said an analyst at a leading brokerage firm.
"Though the banks showed higher operating profits, the rising trend of non-performing loans in the banking sector and the risk premium for capital market will increase in coming days due to rising political risk ahead of January 2019 national election," commented International Leasing Securities.
The stockbroker noted that as the market witnessed a significant rally in 2017 and election year is in sight, investors might remain watchful and vigilant with their investment decisions in 2018.
"The risk factors for the capital market like possibility of rising prices of fuel oil and commodities in international market, resulting in shirking margin for several import-dependent sectors coupled with increasing interest rate in the money market products might drive away funds from the capital market," the stockbroker said.
The market started the day on negative note and fell below 6,235-level within the mid-session. However, it started to climb up a bit and then closed marginally higher.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went up by 9.89 points or 0.15 per cent to finish the maiden session of 2018 at 6,254.
The DSE Shariah Index (DSES) also saw a fractional gain of 0.75 point or 0.05 per cent to finish at 1,391. However, the DS30 index, comprising blue chips fell 1.67 points or 0.07 per cent to close at 2,281.
However, the market turnover fell sharply by 40 per cent to Tk 3.74 billion, from previous session's Tk 6.28 billion.
Investors' attention was mostly focused on banking sector, accounting for 32 per cent, followed by textile with 18 per cent and engineering 10 per cent.
Banking issues accounted for 17 per cent, followed by fuel & power with 14 per cent and engineering 12 per cent.
The large-cap sectors showed mixed performance. Fuel & power sector posted the highest gain of 0.58 per cent, followed by non-bank financial institutions with 0.31 per cent, telecommunication 0.28 per cent and pharmaceuticals 0.15 per cent.
Lafarge topped the day's turnover chart with 2.65 million shares of Tk 184 million changing hands, followed by Paramount Textile, Beximco, Islami Bank and National Bank.
Dragon Sweater was the day's best performer, posting a gain of 9.94 per cent while Tung Hai Knitting & Dyeing was the day's worst loser, shedding 6.86 per cent.
Chittagong Stock Exchange - (CSE) also edged higher with CSE All Shares Price Index of - advancing 90 points to finish at 19,358.
The Selective Categories Index of the port city bourse -- CSCX - also gained 53 points to finish at 11,702.
Gainers beat losers as 145 issues closed higher, 52 drifted lower and 21 remained unchanged on the CSE.
The port city bourse traded 13.08 million shares and mutual fund units worth Tk 349 million in turnover.
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