Stocks dropped yesterday after rising for eight consecutive days thanks to a profit booking tendency among investors.
The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), fell 10 points, or 0.18 per cent, to stand at 5,829.
For all latest news, follow The Daily Star’s Google News channel.
As the market was on a rising trend the last couple of days, most stocks were up by at least 8 per cent to 15 per cent, so investors are taking in their profits now, said a stock broker.
This is a positive thing because when investors make profit, they get the confidence to invest more, he said, adding that the market’s turnover was rising, which meant that investors’ participation was still strong.
The premier bourse’s turnover, an important indicator of the stock market, rose 12 per cent to Tk 1,719 crore.
The profit booking session was expected after a stretch of rise of the index, said stock investor Misbahul Haque.
A higher turnover is a positive sign for the market, he said.
As investors have regained their confidence, they are now investing funds and the regulator should work to retain this confidence, he added.
At the DSE, 103 companies’ stocks rose, that of 215 fell and that of 47 remained the same.
Standard Insurance topped the gainers’ list, rising 10 per cent, followed by City General Insurance Company, Index Agro Industries, Crystal Insurance Company and Maksons Spinning Mills.
Beximco’s stocks were traded the most, hitting Tk 114 crore, followed by Prime Bank, British American Tobacco, Saif Powertec and National Feed Mills.
Bangladesh Industrial Finance Company shed the most, dropping 6.67 per cent, followed by Premier Leasing and Finance, FAS Finance and Investment, Fareast Finance and Investment and MIDAS Financing.
While almost every company witnessed corrections, insurance stocks remained bullish. Most insurers’ stocks rose due to the active participation of some big investors.
Market analysts are saying that their participation resulted in the stocks becoming overvalued, so general investors need to be cautious.
Among the 50 insurance stocks, 37 rose, 10 dropped and three remained the same.
Chittagong Stock Exchange (CSE) also took a plunge. The CASPI, the general index of the port city bourse, fell 28 points, or 0.16 per cent, to 16,894.
Among 289 stocks to witness trade, 89 rose, 168 fell and 32 remained the same.
