Indices slip as investors book profits

After an upward trend for two straight sessions, the indices at the Dhaka Stock Exchange (DSE) inched down on Thursday due to a stock selloff amid profit booking.

DSEX, the broad index of the DSE, declined by 0.19% or 12.4 points to settle at 6,283.

The DS30 and the DSE Shariah index dropped by 6.21 and 3.07 points, respectively.

In the previous two trading sessions, the DSEX gained around 15 points.

Owing to a decrease in investors' participation in the market, the Dhaka bourse observed an 18.7% fall in turnover to Tk608.45 crore from Tk748.45 crore in the previous session.

Out of the 326 issues traded, 33 advanced, 139 declined, and 154 remained unchanged.

According to EBL Securities' daily market commentary, the equity indices failed to extend their recovery mode and ended the week in the red territory as cautious investors opted for profit booking on major scrips with an uncertain view of the market momentum.

It also said the core index managed to stay afloat until the last hour, when profit booking and selling pressure led the index to plunge to the negative.

The dismal financial performance of the majority of listed companies has prompted investors to continue reshuffling their portfolios and take positions in selective stocks to keep up with the current market trend, it reads.

Pharmaceutical companies contributed the most to total turnover, accounting for 14.4%, followed by IT at 14.1% and paper at 12.3%.

Most of the sectors displayed dismal returns, with travel exerting 2.0%, services 1.3%, and the general insurance sector exerting 1.1% corrections, while only the paper sector and jute exhibited slight positive returns of 2.7% and 0.6%, respectively.