Stocks post marginal fall as Eid nears

FE ONLINE REPORT | Monday, 12 July 2021

Dhaka stocks posted a marginal loss on Monday as cautious investors opted for booking profit on quick-gaining issues ahead of Eid vacation.

The market started on a negative tone as the shaky investors booked profit on general insurance, banking and engineering sector stocks ahead of Eid-ul-Azha and rising trend of Covid-19 infections and deaths.

The key index of the Dhaka Stock Exchange (DSE), DSEX, went down by 4.37 points or 0.07 per cent to settle at 6,208, after gaining more than 35 points in the previous session.

Two other indices, however, edged higher with the DS30 index, comprising blue chips, advanced 10.83 points to finish at 2,259 and the DSE Shariah Index gained 5.27 points to close at 1,346.

Turnover, a crucial indicator of the market, also rose to Tk 15.99 billion on the country’s premier bourse, which was 7.18 per cent higher than the previous day’s mark of Tk 14.92 billion.

Market operators said the investors continued to opt for booking profit on sector-specific stocks as the Covid-19 cases are rising alarmingly every day and the situation is deteriorating fast.

The investors stayed worried about the adverse impact of the pandemic on the macro-economic indicators of the country.

The stockbroker noted that the risk-averse investors preferred to book some gain amid the rising trend of coronavirus infections and deaths in the country.

Some retail investors sold shares to pull out money ahead of Eid vacation, said a leading broker.

He noted that the shaky investors liquidated their holdings from general insurance, banking, cement, engineering and power sectors which pushed down the index.

Losers took a modest lead over the gainers, as out of 372 issues traded, 186 ended lower, 159 higher while 27 remained unchanged on the DSE trading floor.

A total of 329,338 trades were executed in the day’s trading session with a trading volume of 564.17 million shares and mutual fund units.

The market capitalisation of the DSE, however, rose to Tk 5,177 billion on Monday, up from the previous day’s mark of Tk 5,171 billion.

Beximco - the flagship company of Beximco Group- topped the turnover chart with shares worth Tk 1.21 billion changing hands, followed by Power Grid Company (Tk 709 million), BD Finance (Tk 641 million), Sonali Life Insurance (Tk 515 million) and LafargeHolcim (Tk 376 million).

Newly listed Sonali Life Insurance Company was the day’s best performer, posting a gain of 441 per cent to close at Tk 86.50 each as there was no price limit on the trading of the shares of the company on Monday following its corporate declaration.

Purabi General Insurance was the worst loser, losing 6.39 per cent.

However, the Chittagong Stock Exchange closed marginally higher with its All Shares Price Index (CASPI)—gaining 38 points to close at 18,040 while the Selective Categories Index – CSCX gaining 18 points to close at 10,828.

Of the issues traded, 147 declined, 130 advanced and 29 issues remained unchanged on the CSE.

The port city bourse traded 25.13 million shares and mutual fund units with a turnover value of Tk 628 million.

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