Stocks edge lower amid short-term profit booking

Stock indices on the Dhaka and Chattogram exchanges fell slightly on Wednesday as investors favored the booking of short-term profits after two consecutive green sessions.

DSEX, the main index of the Dhaka Stock Exchange (DSE), fell 11.5 points or 0.17% to 6,731.

The recent short-lived rally in the capital market prompted many investors to sell stocks as most equities saw a surge in prices following BSEC’s announcement to ease margin lending requirements for equities. that change categories, EBL Securities wrote in its daily market commentary. .

The index started a recovery from its 19-week low of 6,609 points on Monday and climbed back to 6,677 on Wednesday morning.

Inflation concerns and growing demand for loans from the private sector have heightened investor caution as both factors could hamper the flow of funds into stocks, analysts said.

Private sector credit growth has reached pre-pandemic levels, according to the Bangladesh Bank.

However, many investors still preferred to sit on cash amid the market volatility, as a result, turnover fell by 15.7% to Tk 735 crore on Wednesday.

On a sector basis, the miscellaneous, pharmaceuticals and banking sectors contributed the most to daily turnover – more than 10% each.

The majority of stocks closed in red territory. Of the 377 issues traded at the DSE, 133 advanced, 196 declined and 48 remained unchanged.

The majority of sectors posted mixed performance, with Paper, Jute and Life Insurance topping the chart of gaining sectors.

On the other hand, the market capitalization of the cement, non-banking financial institutions and services sectors fell by more than 1%.

Chittagong stock exchange indices also declined moderately, while the daily turnover of the port city’s stock exchange rose slightly to more than Tk 53 crore.