Dhaka, Bangladesh (BBN) – Bangladesh’s stocks witnessed a mild correction last week that ended on Thursday, breaking a three-week gaining streak, as cautious investors booked quick-profit on sector specific stocks.
Brokers said investors sold shares to bag profit on stocks that saw significant rise in recent upsurge amid latest gas price hike and transport workers strike.
The week featured five trading sessions as usual.
Of them, first session managed to close higher while last four closed lower.
The benchmark index of the Dhaka Stock Exchange (DSE) finished the week at 5,586.75, losing 38.59 points or 0.69 per cent over the week before.
“Stocks exposed a moderate pullback which offset the rally that was seen in previous three week amid profit booking,” said EBL Securities, in its weekly market analysis.
The two other indices also saw modest correction.
The DS30 index, comprising blue chips, shed 15.16 points or 0.74 per cent to finish at 2,021 points.
The DSE Shariah Index lost 5.45 points or 0.42 per cent to close at 1,304 points.
The port city bourse, Chittagong Stock Exchange (CSE), also closed lower with its Selective Categories Index, CSCX, shedding 71.68 points or 0.68 per cent to close at 10,492 points.
The total turnover for the week fell to BDT 53.58 billion on the premier bourse against BDT 51.73 billion in the week before as last week saw five trading sessions instead of previous week’s four.
The daily turnover averaged at BDT 10.72 billion, registering a decline of nearly 17 per cent over the previous week’s average of BDT 12.93 billion.
International Leasing Securities, said, “The shaky investors opted to book profits that saw substantial price surge on the stocks while some others rebalanced their portfolio ahead of the financial sector stocks’ ongoing dividend declarations”.
The market finished the week lower amid volatile trading and declined turnover as the investors adopted ‘wait-and-see’ approach on the ongoing market movement, said the stockbroker.
“The market showed extreme volatility amid dividend declaration of several multinational companies, bank and non-bank financial institution and gas price hike,” said Sheltceh Brokerage.
The stockbroker noted that the announcement of latest gas price hike left investors directionless.
Fuel and power witnessed the highest correction of 3.76 percent as Titas Gas plunged 11.82 per cent alone following the news that distribution margin of the company will remain unchanged.
It was also the week’s second worst loser.
It was followed by NBFI 1.91 per cent, telecommunication 1.53 per cent, engineering 1.45 per cent and pharmaceuticals 0.22 per cent.
The losers took a strong lead over the gainers as out of 332 issues traded, 196 closed lower, 113 closed higher and 23 remained unchanged on the DSE trading floor.
LankaBangla Finance dominated the week’s turnover chart on DSE with 36 million shares of BDT 2.27 billion changing hands, followed by Active Fine Chemicals, Beximco, Islami Bank and Baraka Power.
Premier Leasing & Finance was the week’s highest gainer, posting a 14.07 per cent gain, while Salvo Chemicals was the worst loser, slumping by 11.86 per cent.