Stocks extend rally amid volatility, profit-booking

Dhaka stocks rose for the fourth straight session in a lower volatility on Monday, as risk-averse investors booked profits.

After opening higher in the morning, the key index entered the red territory in around mid-session on profit-booking sell-off before ending green.

At close, the benchmark DSEX index rallied over 20 points or 0.4 percent to settle at 5,147 after hitting a low of 5,122 and high of 5,161.

On the other hand, the DSES index rose over 11 points or 1 percent to 1,192 and blue-chip DS30 gained 8 points or 0.8 percent to 1,813.

“The trading was marked with volatility and profit booking, which was expected in an overbought situation,” said a stock broker.

Fund managers opined that amid profit booking, markets may see consolidation. A host of factors such as macroeconomic data, stimulus packages, Covid-19 vaccine related news, coronavirus cases, and other cues, set the market tone, they said.

Bank, the market’s bellwether sector, took mild heat from the news that additional 1% provisioning norm by Bangladesh Bank could hit banks profitability.

Among the major sectors, telecom, insurance and pharmaceuticals closed positive while cement, ceramics and textile saw price correction.

Majority of stock prices fell as out of 358 issues traded, 122 closed higher, 166 declined and 70 remained unchanged.

Beximco—the flagship company of Beximco Group—dominated the trading with shares worth Tk 67 crore, accounting for almost 10 percent of the total turnover.

It was followed by Beximco Pharmaceuticals since the news that Beximco will import 1 million more doses of the coronavirus vaccine from the Serum Institute of India for commercial distribution among employees of private firms like pharmaceutical companies and banks. The company has already signed a deal with Serum to bring 30 million doses of the vaccine developed by Britain’s AstraZeneca and the University of Oxford.

Debutant Dominage Steel Systems continued to gain as its share prices soared over 330 percent from its debut day, making it top gainer of the day.