Stocks open the week on a cautious note as profit-taking drags indices lower

Infographic: TBS

Stocks opened the week in negative territory as investors opted to book profits following recent gains, pushing the benchmark index of the Dhaka Stock Exchange (DSE) slightly lower amid a cautious trading mood.

The DSEX, the broad index of the prime bourse, edged down by 0.10% to close at 5,229 points, while the blue-chip DS30 index slipped 0.17% to finish at 1,998 points today (8 February).

Market breadth reflected a lack of clear direction, with 162 issues advancing, an equal number declining, and 69 remaining unchanged.

Turnover dropped sharply by 19% from the previous session to Tk478 crore, indicating reduced participation as investors stayed on the sidelines in the absence of fresh catalysts. Market participants appeared reluctant to take aggressive positions after the recent upward trend, choosing instead to reassess valuations.

EBL Securities, in its daily market review, said the benchmark index started the week on a flat note as investors took advantage of the recent price appreciation to realise profits, triggering sustained selling pressure in several large-cap and blue-chip stocks. It noted that investors remained watchful over further political clarity ahead of the upcoming national election, which continued to influence short-term sentiment.

Sector-wise, pharmaceutical stocks dominated turnover, accounting for 14.7% of total trading value, followed closely by textile and banking sectors, each contributing 13.6%. Asiatic Laboratories, Simtex Industries, Kay and Que, Islami Bank and Monno Fabrics emerged as the most actively traded stocks of the day.

Most sectors ended the session in the red, with engineering and jute stocks posting the steepest declines of 1% each, while the tannery sector lost 0.7%. The negative sectoral performance underscored the impact of profit-taking across a wide range of scrips.

Interestingly, the top gainers' list was dominated by risky and loss-making financial institutions, as speculative interest pushed up prices of Fareast Finance, International Leasing, Peoples Leasing and FAS Finance, each posting double-digit gains. Associated Oxygen also featured among the gainers.

On the losing side, DBH First Mutual Fund suffered the sharpest decline, followed by Meghna Condensed Milk, Meghna PET, Reliance Insurance Mutual Fund and Prime Bank First ICB AMCL Mutual Fund, as investors offloaded positions in these issues.

The Chittagong Stock Exchange also mirrored the weak sentiment. Its selective categories index CSCX fell by 43 points to 9,078, while the all-share index CASPI dropped 48 points to close at 14,683. Turnover on the port city bourse stood at Tk6.33 crore.