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Stocks edge lower on profit taking

  • Published at 04:27 am June 14th, 2013
Stocks edge lower on profit taking

Stocks edged lower amid continued volatility yesterday, as cautious investors went for booking profits after a three-day rally.

The market swung between positives and negatives several sessions but landed in the red at close as sellers marginally beat buyers.

The benchmark DSE General Index, DGEN, ended at 4300, shedding 29 points or 0.66%.

The new benchmark, DSEX, was down 23 points or 0.57% to 4180. The DSE30 lost 6 points or 0.44% to 1506.

The Chittagong Stock Exchange Selective Category Index, CSCX, lost 41 points to 8029.

“The market paused to take a breather after the continued rally, which was expected,” said a fund manager.

Market participation suffered indicating that sellers were reluctant to sell at a lower price. The total turnover at DSE stood at Tk6bn, which was 21.1% lower than the previous day’s 8-month high.

Gainers took a modest lead over the losers as out of 288 issues traded, 144 advanced, 121 declined and 23 remained unchanged.

“Market rally faced resistance as investors booked profit,” said Lanka Bangla Securities.

From the bottom, market has yielded around 19% return as of yesterday, it said.

It said institutional investors might want to book some profit to report healthy investment return in the June ending quarter.

As the short-term rhythmic bullish movement faced some resistance due to net selling pressure, cautious movements were observed during the session, according to IDLC Investment.

In the midst of continuous volatility, general insurance rose 3.46% and life insurance 0.76%.

The worst losers were cement, bank, telecommunications, financial institutions, pharmaceuticals and micro cap companies.

Bangladesh Submarine Cable Company Ltd became the turnover leader followed by, Summit Purbanchal Power Company Ltd, Unique Hotel and Resorts, United Airways and RN Spinning.