Snap Stock- Stocks snap nine-week gaining streak
Dhaka stocks snapped a nine-week rally in the past week as a section of investors went for selling shares to book some profits while many others kept buying shares of insurance companies.
DSEX, the key index of the Dhaka Stock Exchange, dropped by 0.23 per cent, or 13.89 points, over the past week to close at 6,052.76 points on June 17, the last trading session of the week after gaining 812 points in the previous nine weeks.
Despite a gain in three sessions out of five sessions in the week, the core index dropped in the past week due mainly to a significant fall in the first trading session of the week, market operators said.
They said that the market had hit a 39-month high on June 10, the last trading session in the previous week, which provoked investors to realise some profits on June 13.
Average share prices of telecommunication, engineering, bank and non-bank financial institution sectors dropped by 2.2 per cent, 1.6 per cent, 1.3 per cent and 1.1 per cent respectively.
The DSE on June 14 suspended operation of Banco Securities, a brokerage house of the DSE, for an alleged embezzlement of Tk 66 crore from the consolidated customer’s account.
Investors were active mostly with the insurance sector companies over the week.
So, share prices of general insurance sector soared by 6.4 per cent in the past week and registered 22 per cent of the week’s total turnover.
Besides, share prices of energy, cement and pharmaceutical sectors increased by 1.7 per cent, 1 per cent and 0.3 per cent respectively.
Trading of the shares of Paper Processing & Packaging Limited, Monno Fabrics Limited, Bangladesh Monospool Paper Manufacturing Co Limited and Tamijuddin Textile Mills Limited began on the main board of the DSE on June 13 again as the companies came out of the over-the-counter market.
Share prices of the four companies soared by the maximum limit in all of the five trading days in the week.
EBL Securities in its weekly market commentary said, ‘Investors took a conservative approach towards the bourse as Covid cases in the country are on the rise while many investors showed interest to some quick-gaining small capitalised stocks.’
‘However, tax benefits facility in the outgoing fiscal year and media report on continuation of the special facility to disclose untaxed money in the capital market may positively impact the market,’ it said.
The average turnover on the DSE dropped to Tk 1,959.73 crore in the past week compared with that of Tk 2,437.64 crore in the previous week.
Out of the 371 issues traded in the past week, 148 advanced, 210 declined and 17 remained unchanged.
DSE’s blue-chip index DS30 declined by 0.36 per cent, or 8.04 points, to finish at 2,197.06 points.
Shariah index DSES also shed 0.66 per cent, or 8.55 points, over the past week to close at 1,290.93 points.
BEXIMCO led the turnover chart in the past week with its shares worth Tk 817.47 crore changing hands.
Pioneer Insurance, Orion Pharmaceuticals, Fortune Shoes, Lub-rref Bangladesh, National Feed Mills, Green Delta Insurance, NRB Commercial Bank, Sonar Bangla Insurance and Pragati Insurance were the other turnover leaders.