The Financial Express

Stocks snap six-day winning streak

| Updated: July 26, 2021 19:16:53

Stocks snap six-day winning streak

Stocks slipped into the red on Monday, snapping a six-day winning streak, as risk-averse investors booked some profit on quick-gaining issues.

After hitting the key index an all-time high the previous day, the market opened on a positive note for a few minutes and the rest of the session went down steadily.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 20.18 points or 0.32 per cent to settle at 6,404, after hitting an all-time high in the previous day. DSEX, however, added 216 points in the past six sessions.

Two other indices also ended lower with the DSE 30 Index, comprising blue chips, fell 13.74 points to finish at 2,322 and the DSE Shariah Index (DSES) shed 3.58 points to close at 1,390.

Market insiders said Bangladesh Bank’s warning to the commercial banks of diverting funds to unproductive sectors like the stock market coupled with the rising trend of coronavirus cases prompted investors to take profit on quick-gaining stocks.

The central bank officials said they found some stimulus funds were even being used in the stock market and real estate sector as economic activities remained sluggish in the face of recurring waves of Covid-19.

In a letter sent to banks on Sunday, the BB asked lenders to engage internal audit divisions in ensuring that money was not going to unproductive sectors and the stimulus loans are used in the targeted sectors only.

Besides, as the DSEX reached an all-time high in the previous day, some shaky investors opted for booking profit on major sectors, said a merchant banker.

Turnover, a crucial indicator of the market, stood at Tk 14.28 billion, which was 5.50 per cent higher than the previous day’s tally of Tk 13.54 billion.

Losers took a strong lead over the gainers, as out of 374 issues traded, 229 declined, 111 advanced and 34 issues remained unchanged on the DSE trading floor.

Newly listed Baraka Patenga Power topped the turnover chart with 16.20 million shares worth Tk 753 million changing hands, followed by Saif Powertec (Tk 407 million), BATBC (Tk 400 million), Beximco (350 million) and Fu-Wang Ceramic (Tk 339 million).

Baraka Patenga Power was the day’s top gainer, posting a 9.92 per cent rise while ICB AMCL Second Mutual Fund was the worst loser, losing 5.73 per cent.

A total number of 253,013 trades were executed in the day’s trading session with a trading volume of 493.51 million shares and mutual fund units.

The market cap of DSE also dropped to Tk 5,343 billion on Monday, down from the previous day’s mark of Tk 5,350 billion.

The Chittagong Stock Exchange also ended marginally lower with its CSE All Share Price Index – CASPI –losing 57 points to settle at 18,616 and the Selective Categories Index - CSCX –shedding 37 points to finish at 11,180.

Here too, the losers beat gainers, as 155 issues closed lower, 108 higher and 44 remained unchanged on the CSE trading floor.

The port city bourse traded 26.33 million shares and mutual fund units with a turnover value of Tk 599 million.

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