Bank stocks end six-day rally
Market activity, measured by turnover, decreased by 2%, settling at Tk666 crore, indicating reduced investor participation
Stocks snapped a six-day rally yesterday, primarily due to a decline in bank shares amid short-term profit-taking pressure.
On the day, the DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell by 1.60 points to settle at 5,066, while the blue-chip DS30 dropped by 0.04 point to close at 1,908.
Of the traded issues, 177 advanced, 170 declined, and 55 remained unchanged.
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Market activity, measured by turnover, decreased by 2%, settling at Tk666 crore, indicating reduced investor participation.
According to EBL Securities' daily market review, Islami Bank played a key role in dragging down the index, while further declines in the share prices of BRAC Bank, United Commercial Bank, Dhaka Bank, One Bank, and Eastern Bank added to the erosion.
Market insiders said the six-day rally had been largely driven by banking stocks, prompting investors to book quick profits.
In its commentary, EBL Securities noted that the benchmark index of the capital bourse ended on a flat note amid heightened intraday volatility, as investors opted to lock in short-term gains from recently appreciated stocks while taking renewed positions in selected small-cap and blue-chip scrips.
The trading floor witnessed a tussle between buyers and sellers for control of market momentum, it added.
EBL Securities further said that although investor sentiment remained broadly positive – bolstered by the decision to maintain existing export incentives into the new fiscal year and a notable surge in foreign direct investment (FDI) during the third quarter of the current fiscal year – profit-taking pressure from sectors that had experienced sharp rallies in previous sessions led to a day of volatile trading and a flat index movement.
On the sectoral front, bank issues recorded the highest turnover, contributing 16.2% to the DSE's total turnover, followed by the pharmaceutical and textile sectors.
Sector performance was mixed, with jute, tannery, and ceramics posting the most positive returns, while travel, life insurance, and banking sectors showed the most negative returns on the bourse.
Midland Bank was the top-traded stock with contributing 3.1% to the DSE total turnover, which was followed by Lovello Ice-cream and Bank Asia.
Bangladesh Finance led the gainers' list as its share price jumped by 10% to reach Tk9.90, which was followed by Aramit, which rose by 9.98% to Tk190.5 per share, and Gemini Sea Food, which jumped by 9.97% to reach at Tk151.
On the other end, Rupali Bank was the top loser last week, dropping 6.25% to Tk22.5.
