Market corrects amid cautious profit-booking

Cautious investors' efforts to book some profits resulted in a correction in stock indices on Sunday.

Also, the slight lack of enthusiasm, mainly of the buyers, reduced the investors' participation in daily trading and both the bourses registered lower turnover over the opening session of the week.

DSEX, the broad-based index at the Dhaka Stock Exchange (DSE), fell by 0.50% or 30.6 points to close at 6,036.

"The market observed a cautious selling approach as the market observed resistance to settle above the 6,100 marks while some investors favoured booking profit amidst the volatile trading during the session," said the EBL Securities in their daily market commentary.

Consequently, turnover at the DSE contracted and stood at Tk2,070 crore, which was 22.49% lower than that over the previous session.

The Blue chip index DS30 fell by 0.57% to close at 1,963.

Sunday seems to have been a mixed session for investors as losers did not significantly outnumber gainers, both in terms of traded scrips and sectors.

The IT with 2.3% loss in market capitalisation, life insurance with 2.1% decline, and paper and printing with 1.2% losses were the most corrected sectors.

On the flipside, mutual funds, tannery and textile were the biggest gainers of the day with 3.3%, 1.5% and 1.1% gains respectively.

Meanwhile, much-discussed general insurance was the most traded sector occupying 17% of DSE turnover, followed by the textile and miscellaneous sectors occupying 14% and over 13% of it respectively.

Out of the 372 issues traded at the DSE, 159 advanced, 192 declined, and 21 remained unchanged.

Meanwhile, the Chittagong Stock Exchange (CSE) also settled on the red trajectory with a lower turnover.

Turnover at the port-city bourse was Tk90 crore on Sunday, down from over Tk114 crore on Thursday.