Market slips again as banking rally sparks profit-taking
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) fell 14 points to close at 5,471, while the blue-chip DS30 index dropped 4.41 points to settle at 2,125.
Stocks slipped for a second consecutive session today (6 August), as investors locked in short-term gains following a recent rally in large-cap stocks, particularly in the banking sector.
The benchmark DSEX index of the Dhaka Stock Exchange (DSE) fell 14 points to close at 5,471, while the blue-chip DS30 index dropped 4.41 points to settle at 2,125.
In the last two trading days, the DSEX lost 65 points, with market capitalisation shrinking by Tk4,000 crore to stand at Tk7.13 lakh crore.
Of the 400 issues traded, 154 advanced, 184 declined, and 62 remained unchanged.
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Market participation also weakened, with turnover falling by 2% to Tk890 crore from the previous session.
Analysts noted that the pause was expected after a sharp rally fuelled by improved liquidity and renewed investor optimism. While banking stocks led the pullback, selective interest in blue-chip shares remains strong.
According to BRAC EPL Stock Brokerage, most large-cap sectors ended in the red. The banking sector posted the highest loss of 1.73%, followed by non-bank financial institutions, fuel and power, and telecom.
EBL Securities reported that Islami Bank, BRAC Bank, City Bank, Eastern Bank, Southeast Bank, and Bank Asia were the top contributors to the day's decline.
It noted that the bullish momentum of the benchmark index took a breather for the second consecutive session as investors preferred realising short-term gains from the recent rallies.
The market remained under selling pressure for the majority of today's session, as profit-taking dominated investor sentiment. Although buying interest emerged in selective blue-chip stocks, it fell short to offset the profit-taking sell frenzy, causing the benchmark index to extend its corrections, it added.
On the sectoral front, bank issues exerted the highest turnover, contributing 23.5% to the DSE's total turnover, followed by pharmaceuticals with 13.5% and textile with 9.1%.
City Bank topped the turnover chart, with shares worth Tk45 crore changing hands. It was followed by Bangladesh Shipping Corporation at Tk35 crore and BRAC Bank at Tk33 crore.
On the upside, paper stocks gained the most with a 4% rise, followed by life insurance at 2.5% and jute at 2%.
Pragati Life Insurance was the day's top gainer, as its share price surged 9.2%, followed by Malek Spinning with a gain of 8.57%, Rahima Food 8.50% and Wata Chemical 7.45%.
On the other hand, Fareast Life Insurance was the day's worst performer, with its share price falling by 5.05%, followed by Dominage Steel 4.55%, Bay Leasing 4.17%, Standard Bank 4%, and Islami Bank 3.93%.
The port city bourse, Chittagong Stock Exchange, also witnessed a profit-taking session today. The Selective Categories' Index (CSCX) and All Share Price Index (CASPI) decreased by 31 and 49 points, respectively.
