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Stocks break 13-week winning streak


Published : 26 Sep 2020 10:36 PM | Updated : 27 Sep 2020 07:38 AM

Stocks dipped last week breaking a 13-week gaining streak as investors chose to profit on quick-gaining stocks, especially from pharmaceuticals, telecom, food and banking.

Market analysts said the fall of the index was expected and there is nothing to worry over it since the correction will create more opportunity to inject fresh investments.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), decreased by 125.87 points or 2.47 percent to close at 4,978 in last week, after a cumulative gain of 1,144 points in the past 13 consecutive weeks.

Market operators said capital market faced the correction with profit-taking as risk-averse investors were busy to sell their shares on large-cap issues, especially from food, banking, pharmaceuticals and telecom sectors which saw substantial gain in recent price surge.

The revised margin loan policy by the market regulator also affected investors to put fresh stake in stocks as the regulator set maximum margin loan limit issued on October 1 in line with the DSE core index, they added.

According to the order, merchant banks or brokerage firms are now allowed to provide margin loan to their clients at a maximum limit of 1:1 when the DSEX stands below 4,000.

Besides, some investors sold their shares last week to inject funds into the debut trading of Walton Hi-Tech Industries, creating selling pressure in the market.

A section of investors was active on the market expecting regulatory moves and resumption of economic activities to gain from the market.

However, the DSEX dropped by 125.87 points or 2.47 percent to close at 4,978 in last week.

The DSE 30 Index comprising of blue chips also went down by 60.40 points to settle at 1701 points and the DSE Shariah Index (DSES) fell by 36.75 points to finish at 1,126.

The total turnover decreased to stand at Tk 45.73 billion over Tk 56.35 billion in the week ago.

The daily turnover averaged Tk 9.15 billion last week, down by 19 percent to Tk 11.27 billion in the previous week.

Meantime, food and allied sector declined by nearly 6percentas share price of British American Tobacco dropped by 6.16 percent to close at Tk 1121 on Thursday.

It was followed by the heavyweight banking sector (-3.50 percent), Pharmaceuticals sector (-2.90 percent) and telecom sectors (-1.70 percent).

The Chittagong Stock Exchange (CSE) also saw negative trend last week with its selective category index (CSCX) losing 233 points to close at 8,523 points.

All-Share Price Index (CASPI) of the port city bourse was lower by almost 364 points on Thursday to close at 14,209 points.

At the CSE, total 325 issues were traded. Among them, 192 ended lower, 113 closed higher, and 20 remained unchanged. 

However, the number of shares transacted on the floor of the CSE was 77.18 million and the total turnover in value was Tk 1.32 billion during the last week.