Retail investors are in despair as DSE witnesses volatility. BBN file photo
Dhaka, Bangladesh (BBN) - Bangladesh’s stocks witnessed moderate correction last week that ended on Thursday, snapping a four-week winning streak, as cautious investors opted for booking profits on quick-gaining stocks.
Analysts said the investors sold shares to bag profits on stocks that saw substantial gains in the past few weeks, taking the market in the red zone.
The week witnessed five trading sessions as usual. Of them, the three sessions closed lower while two ended higher.
Week-on-week, DSEX, the prime index of the Dhaka Stock Exchange (DSE), which replaced the DGEN in four-and-a-half-year back, went down by 33.43 points or 0.54 per cent to settle at 6,170.
City Bank Capital Resources, a merchant bank, said, “The correction was triggered by slow participation and pursuance of profit booking by the investors, creating some selling pressure on market”.
The merchant bank noted that this profit booking sentiment also pushed the market to dip below 6,200 points mark.
The two other indices -- the DS30 index and the DSE Shariah Index (DSES) - also followed the suit to close at 2,197 and 1,362 points, after shedding 28 points and 23 points respectively.
The port city bourse, Chittagong Stock Exchange (CSE), also finished lower with its Selective Categories Index, CSCX, losing 72 points or 0.61 per cent to settle at 11,578 points.
The total turnover for the week fell to BDT 61.05 billion on major bourse which was BDT 61.64 billion in the week before.
The daily turnover averaged at BDT 12.21 billion, which was 1.0 percent lower than the previous week's average of BDT 12.33 billion.
Bank sector kept its dominance in turnover chart, capturing 48 percent of the week's total turnover, followed by textile 10 percent and financial institutions 8.0 percent.
According to International Leasing Securities, “The market faced mild correction in the week as the investors preferred to book quick-gain on their investment over the recent price surge while others were busy to rebalance their portfolios ahead of year-end corporate declarations”.
The stockbroker noted that several issues from bank and life insurance sector enjoyed buoyancy while selling of shares mostly from textile, engineering, telecom and pharmaceuticals & chemicals sectors contributed to the fall in indices.
“Investors’ participation remained encouraging as the turnover stayed over BDT 12 billion while some investors were observing the market movement,” the stockbroker said.
National Bank topped the week's turnover chart with shares of BDT 2.73 billion changing hands, followed by First Security Islami Bank BDT 1.80 billion, IFIC Bank BDT 1.76 billion, Al-Arafah Islami Bank BDT 1.1.75 billion and LankaBangla Finance BDT 1.46 billion.
Rupali Bank was the week's highest gainer, posting 16.15 percent gain, while Ratanpur Steels was the worst loser, losing 18.50 percent.
BBN/SS/ANS