Stocks extend losses on profit-booking

The local stock market witnessed another downtrend on Thursday with the turnover value falling as risk-averse investors kept booking profits from quick-gaining shares.

Analysts said the market retreated marginally in continuation of the previous day's correction as investors were mostly in the profit-taking mood in view of the last few days' price surge.

Following the previous day's mild correction, the market opened higher and the key index of the premier bourse of the country rose 28 points within the first 30 minutes of trading. But throughout the rest of the session the market fell steadily.

Finally, the DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), settled at 5,736, shedding 20.51 points or 0.35 per cent over that of the previous day.

The two other indices also edged down. The DS30 index, comprising blue chips, fell 4.97 points or 0.23 per cent to settle at 2134. The DSE Shariah Index (DSES) lost 4.44 points or 0.34 per cent to close at 1,313.

The turnover also came down to Tk 10.16 billion (1,016 crore), 8.88 per cent lower than the previous day's value of Tk 11.15 billion.

The engineering sector emerged the turnover leader accounting for 20 per cent of the day's total value. Bank issues settled in the second position securing 18 per cent of the total turnover value. It was followed by pharmaceuticals with 13 per cent.

All the large-cap sectors put up negative performance except financial institutions and pharmaceuticals which gained 0.09 per cent and 0.04 per cent respectively.

The telecommunication sector posted the highest loss of 0.81 per cent followed by the engineering issues with 0.78 per cent, fuel and power 0.77 per cent, food and allied issues 0.59 per cent and banks 0.54 per cent.

The losers took a strong lead over the gainers as out of 329 issues traded, 197 closed lower, 86 higher and 46 unchanged on the DSE trading floor.

Beximco dominated the DSE turnover chart with 16.91 million shares worth Tk 622 million changing hands. It was followed by City Bank, Saif Powertec, IDLC Finance and LankaBangla Finance.