The Financial Express

Stock market snaps a four-day winning streak

| Updated: August 22, 2021 17:34:17

Stock market snaps a four-day winning streak

The stock market saw a moderate correction Wednesday, snapping a four-day winning streak, as risk-averse investors opted for booking profits on quick-gaining stocks.

The market opened higher and the key index of the Dhaka bourse crossed 6,800-mark in early trading, but late hours profit booking sell-offs wiped out the early gains.

DSEX, the key index of the Dhaka Stock Exchange (DSE), went down by 15.31 points or 0.22 per cent to settle at 6,771, after gaining 170 points in the past four consecutive sessions.

Market analysts said the investors are taking their profits as the market has remained bullish for the last few weeks.

The index reached a record high since its inception more than eight years back in 2013 on Tuesday with many stocks gaining by 10 to 15 per cent in the last month

The DSE Shariah Index (DSES) also shed 2.77 points to close at 1,466. However, the DS30 index, a group of 30 prominent companies, advanced 4.65 points to settle at 2,426.

Turnover, a crucial indicator of the market, stood at Tk 24.65 billion on the country’s premier bourse, which was 7.78 per cent lower than the previous day’s turnover of Tk 26.73 billion.

The average daily turnover maintained above Tk 24 billion in the last 11 consecutive sessions on the DSE as both the high net worth individual and institutional investors were active on the trading floor.

Top negative index contributors were Robi Axiata, Investment Corporation of Bangladesh, Dutch-Bangla Bank, Al-Arafah Islami Bank and Islami Bank Bangladesh. They collectively brought the DSEX down by 14 points, according to data from amarstock.com, a market data analyst.

However, optimistic investors remained active in the market riding on the stock market regulator’s extended credit facilities.

The Bangladesh Securities and Exchange Commission (BSEC) last week revised the limit of margin loan facilities, based on the DSE key index, at a maximum rate of 1:0.80 when the DSEX is below 8,000.

Losers took a strong lead over the gainers, as out of 374 issues traded, 216 declined, 138 advanced and 20 remained unchanged on the DSE trading floor.

Beximco - the flagship company of Beximco Group-topped the turnover list with shares worth Tk 1.30 billion changing hands, followed by IFIC Bank (Tk 750 million), LankaBangla Finance (Tk 628 million), Orion Pharma (Tk 529 million) and LafargeHolcim Bangladesh (Tk 489 million).

Shahjibazar Power Company was the best performer, posting a gain of 9.79 per cent while Jute Spinners was the worst loser, losing 6.12 per cent.

The Chittagong Stock Exchange also ended marginally lower with its All Shares Price Index (CASPI)—shedding 21 points to finish at 19,746 while the Selective Categories Index – CSCX losing 10 points to close at 11,840.

Of the issues traded, 172 declined, 125 advanced and 31 issues remained unchanged on the CSE.

The port city bourse traded 44.23 million shares and mutual fund units with a turnover value of Tk 924 million.

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