Stocks drop after four-day rally

Stocks dropped yesterday after a four-day gaining streak due to the profit booking tendency among investors in the banking, non-bank financial institution (NBFI), and mutual fund sectors.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell 15 points, or 0.22 per cent, to 6,771 yesterday.

DS-30, the blue-chip stock index, rose 4 points to 2,426 on the day. The shariah index of the premier bourse, DSES, dropped 2 points to 1,466.

Turnover, another important indicator of the market, fell 7 per cent to Tk 2,673 crore.

"The stock market has been in a rising trend for the last few months and after witnessing a few days of rally, investors decided to take profits," a stock broker said.

"As bank, NBFI and mutual funds rose the highest on Tuesday, the profit booking tendency in these sectors was also higher," he added.

NBFI stocks dropped 1.69 per cent, bank stocks fell 1.58 per cent, and mutual funds decreased 1.23 per cent, according to data from UCB Stock Brokerage.

"Profit booking is a good sign for the market so there is nothing to worry," the stock broker said.

Investors need to consider a company's performance and potential before investing.

Since banks have high paid-up capital while the NBFI sector was also very strong in the market, their drop impacted the index, he added.

At the DSE, 138 stocks advanced, 216 declined and 20 remained unchanged.

Orion Infusions topped the gainers' list, rising 9.91 per cent, followed by Shahjibazar Power, Metro Spinning, HR Textiles, and South Bangla Agriculture & Commerce Bank.

Stocks of Beximco Ltd traded the most, worth Tk 130 crore, followed by IFIC Bank, LankaBangla Finance, Orion Pharmaceuticals, and LafargeHolcim Bangladesh.

Jute Spinners shed the most, falling 6.12 per cent, followed by Shyampur Sugar Mills, Al-Arafah Islami Bank, AB Bank, and One bank.

The port city bourse also fell yesterday. The CASPI, the general index of the Chittagong Stock Exchange declined 21 points, or 0.10 per cent, to 19,746.

Among 328 traded stocks, 125 advanced, 172 dropped, and 31 remained unchanged.