For-profit craters stock prices

Shares tumbled on Monday as risk-averse investors opted to book profits on key sector issues amid fears of further price erosion.

The market started on a positive note, but the morning optimism was not sustained due to the profit booking selling frenzy.

DSEX, the main index of the Dhaka Stock Exchange (DSE), slipped 65.26 points or 0.93% to 6,926, the lowest in four weeks since January 4, when the DSEX was 6,892.

The benchmark index has lost more than 106 points in the last four consecutive sessions while it eroded almost 170 points during the month of January.

Investor appetite for shares of newly listed Union Bank which entered the fourth day of trading, waned as it shed 0.75% to close at 13.20 Tk on Monday.

The private commercial bank, which raised 4.28 billion taka in the capital market using the fixed price method, made its stock market debut last Wednesday.

Market analysts said cautious investors continued to opt for profit booking on the sector’s top stocks amid rising virus cases and ongoing quarterly earnings reports.

Even companies that posted significant profit growth in their latest quarterly results could not perform well in the market amid mounting tension amid rising virus cases, they said.

Large-cap stocks such as Beximco, Investment Corporation of Bangladesh, Robi, British American Tobacco and National Life Insurance jointly contributed to a 29-point DSEX decline, according to amarstock.com, a market data analyst.

Some 69 listed companies published their quarterly accounts on Monday. Among them, 39 posted higher earnings per share (EPS) growth for July-December 2021 compared to the same period a year earlier.

Two other indexes also fell. The DS30 index, made up of blue chips, lost 26 points to end at 2,559 and the DSE Shariah index lost 9.27 points to close at 1,481.

Turnover, the market’s most important indicator, came in at 12.15 billion taka, 9.0 percent lower than the previous day’s tally of 13.33 billion taka.

Financial institutions recorded the highest loss of 1.90%, followed by textiles with 1.70%, banking 0.60%, electricity 0.60%, pharmaceuticals 0.60%, food 0.40% and engineering 0.40%.

The losers took a strong lead over the winners, as out of 380 issues traded, 264 declined, 72 advanced and 44 remained unchanged on the DSE floor.

A total of 272,471 trades were executed during today’s trading session with a trading volume of 305.17 million shares.

DSE’s market capitalization also fell to 5.569 billion taka on Monday from 5.605 billion taka in the previous session.

Newly listed Union Bank was the most traded stock with shares worth Tk 903 million changing hands, followed closely by Beximco (Tk 651 million), Bangladesh Shipping Corporation (Tk 502 million of Tk), National Polymer (410 million Tk) and Queen South Textile Mills (384 million taka).

Recently listed BD Thai Food & Beverage was the day’s biggest gainer, posting a 10% gain, while National Feed Mills was the worst loser, losing 8.78%.

The Chittagong Stock Exchange (CSE) also plunged with the CSE All Share Price Index – CASPI – losing 190 points to settle at 20,298 and the Selective Categories Index – CSCX – losing 114 points to close at 12,194.

Of the issues traded, 228 declined, 54 advanced and 23 remained unchanged on the CSE.

The port city stock exchange traded 24.38 million shares and mutual fund units with a turnover value of 522 million taka.

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