Stocks snap three-day winning streak as profit-booking weighs on markets

Stocks ended a three-day winning streak today as investors sold off select holdings to lock in quick gains from the recent rally.

The DSEX, the broad index of the Dhaka Stock Exchange (DSE), inched down by 8.5 points to close at 5,190, down from the previous session's 5,199 points, and the blue-chip index, DS30, ended 10 points lower at 1,915.

The daily turnover also dropped over 22% to Tk431 crore. Of the traded stocks, 178 advanced, 181 declined, and 39 remained unchanged.

According to EBL Securities' daily market review, the decline in BAT Bangladesh shares led to a 4.9-point drop in the overall index. Losses in BRAC Bank, Grameenphone, Robi, and Renata stocks contributed an additional 15 points to the downturn. 

However, gains in Kohinoor Chemical, Linde Bangladesh, Square Pharma, and Orion Pharma helped cushion the index from a steeper decline, the report noted.

EBL Securities, in its daily market commentary, said the benchmark index of the premier bourse experienced a slight correction as swing traders opted to book profits on selected trending stocks. 

However, overall market sentiment remains somewhat optimistic, as investors are closely monitoring market momentum and recent regulatory actions aimed at stimulating the capital market positively, it added.

The market saw mixed reactions as the session began with an upbeat momentum, but risk-averse investors' subsequent cautious selling approach to realise the short-term gains amidst an uncertain market momentum eroded the early session optimism, the report added.

On the sectoral front, pharmaceuticals contributed the most to total turnover, accounting for 19.7%, followed by banks at 13.6% and textiles at 9%.

Most sectors displayed mixed returns, with non-bank financial institutions, telecom, and food exerting the most negative returns on the bourse, while jute, paper, and mutual fund exhibited marginal gains.

Aftab Auto topped the list of gainers, with a 10% increase in its share price to Tk34.1 each, followed by VAML Rupali Bank Mutual Fund with a 10% rise to Tk5.5, and Global Heavy Chemical, which gained 9.83% to reach Tk20.1.

Meanwhile, Renwick Jajneswar led the losers' list as its share price fell by 7.10% to Tk599.2 each, followed by International Leasing, which dropped 6.81% to Tk4.1, and Bank Asia, down 6.66% to Tk16.8.