Profit taking halts four-week rally

Average daily revenue drops 22% on DSE

Shares slipped into the red in the outgoing week through Thursday, setting off a four-week streak of gains as jittery investors rushed to lock in profits from large-cap issues that saw a surge in stocks. price.

Of the five days of trading this week, three sessions suffered losses while two others managed to close slightly higher amid choppy trading.

DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), settled for the week 45 points or 0.69% lower at 6,515, after jumping 411 points in the previous four weeks.

Market operators said cautious investors were booking profits on selective stocks while some were busy reshuffling their portfolios in light of upcoming earnings and dividend reports.

“While the premiere stock market’s benchmark hit a nearly four-month high the previous week, risk-averse investors took profits in selective, quick-gain stocks this week,” a banker said. ‘business.

Investors preferred to book profits, especially on stocks in the cement, financial institutions, pharmaceuticals, power and banking sectors, he said.

“The stock market had a dismal week as investors showed a pattern of profit booking throughout the week,” International Leasing Securities said in its weekly market review.

Most investors took a cautious stance as the Bangladesh Bank adopted a floating exchange rate for interbank transactions which devalued the taka against the dollar, the stockbroker said.

According to EBL Securities, stocks saw corrections as investors did not focus on stocks specific to a particular sector and instead rushed to hunt quick-gain stocks.

The profit-taking trend was evident in some large-cap stocks, taking advantage of recent market price appreciation as investors opted to rebalance their portfolios, the broker said.

However, a buying spree from bargain hunters on some particularly lucrative stocks in the final session of the week tried to inject some positive momentum, the stockbroker said.

Total turnover for the week stood at 70.83 billion taka on the main exchange compared to 90.91 billion taka the previous week.

Daily turnover averaged 14.16 billion taka, down 22% from the previous week’s average of 18.18 billion taka.

Two other DSE indices also ended lower this week. The DS30 index, made up of blue-chip companies, lost 29.82 points to close at 2,346 and the DSES index lost 11.69 points to end at 1,429.

Pharmaceuticals dominated the revenue chart, grabbing 23% of total revenue for the week, followed by miscellaneous (21%) and engineering (10%).

Major sectors suffered losses. Cement recorded the highest loss of 4.70%, followed by non-banking financial institutions by 1.10%, pharmaceuticals by 1.10%, electricity by 0.80%, l engineering 0.50% and banking 0.40%.

However, investor enthusiasm focused on small-cap sectors like Jute, Travel & Leisure, and IT, which posted remarkable gains of 21.80%, 12%, and 3.30%. respectively.

The losers took a strong lead over the winners as out of 388 issues traded, 183 ended lower, 96 higher and 109 remained unchanged on the DSE floor.

Beximco was the most traded stock with shares of Tk 9.12 billion changing hands during the week, followed by Orion Pharma, JMI Hospital Requisite Manufacturing, LafargeHolcim and Shinepukur Ceramics.

JMI Hospital Requisite Manufacturing was the biggest gainer, rising 24.92%, while Sunlife Insurance Company was the week’s worst loser, losing 9.59%.

The Chittagong Stock Exchange (CSE) also ended lower, with the CSE All Share Price Index (CASPI) shedding 135 points to settle at 19,141 and its Selective Categories Index (CSCX) shedding 82 points to end the week at 11,472. .

Of the issues traded, 158 declined, 91 advanced and 85 remained unchanged on the CSE floor.

The port city stock exchange traded 33.40 million shares and mutual fund units with a turnover value of 1.44 billion taka.

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