Stocks hit eight-day profit streak

The stock market’s eight-day earnings streak came to a halt yesterday as investors posted gains.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), lost 56 points, or 0.78 percent, to close at 7,202 points.

“People took their profits while the index was constantly rising, and this is a normal trend in the stock market,” said one stockbroker.

The prime index rose 435 points, or 6.3 percent, in the previous eight trading days, DSE data shows.

If people take profits, the market gains the power to rise further, the broker said, adding that a continuous rise was not a sustainable way to sustain an uptrend.

Now people can have a chance to rearrange their portfolios, he said.

Turnover, a key indicator of the market, rose to Tk 2,708 crore from Tk 2,696 crore the day before.

At the start of the day, the index was in an uptrend, rising 77 points, but began to fall after an hour of trading.

The main stock market’s key index experienced a “needed” correction and broke the winning streak after a sustained upward trend, International Leasing Securities said in its market overview.

Later in the day, investors’ buoyant mood turned, as evidenced by the index’s trajectory after the first hour of the session, when it began to decline gradually, he added.

Nearly all sectors posted losses, except life insurance and miscellaneous.

The DSES, the sharia-based index, and the DS30, the blue-chip index, posted losses of 16.35 points and 9.04 points, respectively. Of the 376 scrips traded, 83 advanced, 261 fell and 32 remained unchanged.

Uttara Bank led the list of winners with a 9.82 percent increase, followed by Nitol Insurance, Alif Industries, National Housing Finance and Kohinoor Industries.

Mithun Knitting lost the most, falling 10 percent, followed by Shyampur Sugar, Beach Hatchery, Meghna Pet Industries and Alltex Industries.

Shares of Beximco Limited were the most traded, valued at 80 crore Tk, followed by Beximco Pharmaceuticals, Square Pharmaceuticals, LankaBangla Finance and British American Tobacco.

Shares on the Chattogram Stock Exchange (CSE) also fell as the CASPI, the port city stock market’s general index, fell 146 points, or 0.69 percent, to 20,984.

Of the 330 shares traded, 96 moved forward, 241 fell and 20 remained unchanged.