Stocks snap six-day rally

Stocks dropped yesterday following a six-day rally as many investors tried to book profits. The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), edged down 10 points, or 0.15 per cent, to 6,617.

"Most stocks surged by 7 to 8 per cent in the last few days so people went for profits," said a top merchant banker.

A profit booking tendency among investors is normal considering that the index recently reached a historical high point.

Besides, Bangladesh Bank's decision to mop up excess liquidity in the banking sector also pushed the investors to seek profits, he said, adding that they should remain careful about investing in low performing stocks.

Turnover, another important indicator of the market, dropped 3 per cent to Tk 2,840 crore. At the DSE, 137 stocks advanced, 223 fell and 15 remained unchanged.

"Many investors booked profits after seeing the index hit its highest level since it meant that many stocks had gained value," said a top official of a stock brokerage firm.

Blaming the profit booking tendency for yesterday's dip, he went on to say that this is a normal occurrence for the stock market.

"But the index was saved from a steep fall as many investors were ready to buy as well," he added.

The National Housing Finance and Investments topped the gainers' list at the DSE by rising 10 per cent followed by Meghna Pet Industries, Tallu Spinning Mills, Usmania Glass Sheet Factory, and Islamic Finance and Investment.

Stocks of Beximco traded the most, worth Tk 167 crore, followed by IFIC Bank, LafargeHolcim Bangladesh, Orion Pharma and Appollo Ispat.

Dacca Dyeing shed the most, losing 8.61 per cent, followed by Emerald Oil, Golden Harvest, AFC Agro Biotech and Beacon Pharmaceuticals.

The Chittagong Stock Exchange (CSE) also dropped yesterday as the CASPI, the general index of the port city bourse, fell 7 points, or 0.04 per cent, to 19,281.

Among the 330 stocks to undergo trade, 132 rose, 181 fell and 17 remained unchanged.