Dhaka stocks declined on Tuesday after gain in the three straight sessions with a drop in turnover due to fresh political tension and profit-taking selling by investors.
DSEX, the benchmark general index of Dhaka Stock Exchange, lost 1.78 per cent, or 69.76 points, to finish at 3,832.62 points on the day.The key index of the bourse increased by 434.21 points in May after a declining trend in January. The DSEX advanced by 186.46 points in the previous three trading sessions.
The turnover of the bourse declined to Tk 417.98 crore from the previous trading session’s Tk 470.45 crore.
Market operators said investors went for profit-taking selling after the recent rise in the share prices.
Fresh tension on the political front centring a reported ban on processions and rallies all over the country also made the investors nervous, they said.
They said that poor profit by most of the banks and financial institutions which increased the price earning ratio of the companies was another reason for the market fall.
The increase in the price earning ratio will reduce purchase power of investors who are using margin loans, they added.
The old benchmark general index of the DSE, DGEN, finished at 4,047.23 points, shedding 1.20 per cent or 49.52 points.
The DGEN increased by 478.28 points in May, while it gained 195.53 points in the previous three trading sessions.
The blue-chip index of the bourse, DS30, finished at 1,407.62 points, declining by 0.89 per cent or 12.73 points on Tuesday.
The DS30 in May advanced by 137.76 points after a bear-run in February.
‘Profit-booking activities went up further today, putting downward pressure on stock prices. Meanwhile, investors acted cautious over fresh positioning at this moment, as investment outlook went slightly cloudy over recent political developments,’ IDLC Investments said in its daily market commentary.
Out of the 277 issues traded on Tuesday, 34 advanced, 235 declined, and eight remained unchanged.
Orion Pharma topped the turnover leaders on the day with its shares worth Tk 25.90 crore changing hands.
Unique Hotel, United Airways, Bangladesh Submarine Cable Company, Summit Purbanchol Power Company, Beximco, Aamra Technologies and Golden Harvest Agro Industries were also among the turnover leaders on the day.
Aamra Technologies led the gainers as its share prices went up by 9.16 per cent.
GBB Power lost the most on the day as its share price declined by 13.88 per cent.
Meanwhile, the DSE on Tuesday held a presentation on the demutualisation act for its members.
-With New Age input