Stocks listed with the Dhaka and Chattogram bourses went through some corrections yesterday after a five-day gaining streak thanks to the profit booking tendency of some investors.
DSEX, the benchmark index of the Dhaka Stock Exchange, dropped 6.63 points or 0.13 per cent to 4,971.68 yesterday.
Just before the fall, the DSEX increased by 116 points or 2.38 per cent over the previous five working days. Turnover, another important indicator of the stock market, fell 9.49 per cent to Tk 1,077.97 crore yesterday.
Many investors tried to book profits as stocks of many companies have seen a rise by 10-15 per cent in the last 5 working days, said a stock broker.
It is normal for the index to fall after rising at a significant rate for few days but the important thing is that turnover is hitting the Tk 1,000 crore-mark every day, he added.
Among major sectors, general insurance, telecom and fuel and power sectors experienced price appreciation while NBFIs, cement and IT industries face price corrections, according to the daily market analysis of UCB Capital Management.
Most listed companies disclosed that their earnings took were hit by the pandemic but the impact was not as devastating as it was thought to be, said a merchant banker.
On the other hand, new leadership in the stock market regulator also played a vital role in reviving confidence among investors, he said.
“That is why the index bounced back,” he added.
Fareast Finance topped the gainers’ list yesterday with a 10 per cent rise followed by Asia Pacific Insurance, Islami Insurance, Paramount Insurance and Fine Foods.
The DSE’s turnover list was topped by Beximco Pharmaceuticals, which traded shares Tk 104 crore worth of shares while Beximco, Brac Bank, DBH and Square Pharmaceuticals followed.
Pragati Life Insurance was the biggest loser with a 9.93 per cent fall followed by Shyampur Sugar, Jute Spinners, Zeal Bangla and Savar Refractories.
The port city bourse also fell. The CSCX, the benchmark index of the Chattogram Stock Exchange, dropped 22 points or 0.25 per cent to 8,549.19.
