Profit booking pulls stocks lower

Shares fell as investors opted for profit booking on Wednesday after the recent rally in trading sessions.

The market was in a corrective phase throughout the trading session. Buying appetite was not enough to offset the selling frenzy, especially for stocks that had gained strongly over the past one or two weeks.

Additionally, many investors were cautious on the trading committee amid the rising trend of Omicron, the novel coronavirus variant in the country, EBL Securities said in its daily market commentary.

The DSEX, the general index of the Dhaka Stock Exchange (DSE), was on course to hit the 7,100 mark in early trading on Wednesday, but fell 0.75% to close at 6,996.

The blue-chip DS30 index also suffered the same degree of correction, while the DSES Shariah index edged down 0.07% as selling pressure from Shariah-compliant stocks was lower than other indices.

Overall investor participation also fell at the DSE on Wednesday, and the turnover of the first exchange fell by 15.8% to Tk 1,664 crore, compared to the previous session.

Most sectors – especially services, fuels and power, and paper – suffered the biggest corrections on Wednesday. Only four sectors – textiles, telecommunications, tanneries and ceramics – benefited from price appreciation.

Of the 382 issues traded at the DSE, 88 advanced, 243 declined and 51 remained unchanged.

The port city’s stock exchange, the Chittagong Stock Exchange (CSE), also settled into red territory, and its broad index, CASPI, closed down 0.8%, at 20,497.