Profit booking pushes stocks lower in past hour

Investor pressure for profits dragged indices lower in the final 90 minutes of Tuesday’s trading session.

But from the first hours of trading, the key DSEX index of the Dhaka Stock Exchange (DSE) gained 42 points thanks to investors’ buying appetite.

EBL Securities said in its daily market commentary that investors’ late-trading profit-taking pushed the base index to stabilize after stocks opened higher early in the session.

The rise in Covid-19 cases prompted many investors to sell stocks to realize capital gains, he added.

Despite the selling pressure, DSEX stayed afloat in green ground and closed at 7,055 points.

The broad CASPI index of the port city Chittagong Stock Exchange (CSE) also gained 8 points to close at 20,658.

During this time, investor participation in the DSE recorded a considerable increase, which helped the daily turnover to increase by 2% to Tk 1,712.87 crore.

Also, despite the sales frenzy, it was a big day for the life insurance and textile sectors, where six companies secured their spot on the DSE’s top ten winners list.

Desh Garments topped the list of winners, while Anlima Yarn was the worst part at DSE.

The miscellaneous, textile and engineering sectors made the largest contribution to daily turnover.

Most sectors posted mixed performances, among which life insurance, textiles and services gained respectively 1.7%, 1.6% and 1.2% at most.

The ceramics, miscellaneous and paper sectors underwent a moderate correction on Tuesday.

Of the 383 issues traded on the DSE, 184 advanced, 146 declined and 53 remained unchanged.