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Stock closes marginally lower to end 8-day rally

Dhaka stocks closed Sunday marginally lower on profit taking selling to end the eight days of ceaseless rally, with all the three indies finishing the first session of the week in red,reports agency.
DSEX, the broader index of Dhaka Stock Exchange (DSE), came only 10.54 points down at 4831.17 to end Sunday’s session when the blue-chip DS30 and the Shariah DSES slid to 1804.89 and 1147.12 respectively.
The daily trade value and volume also declined to Taka 264.66 crore and 7.69 crore shares accordingly from the last week’s close of 9.45 crore shares worth Taka 329.98 crore.
The market experienced moderate price volatility when share prices of 139 issues were advancing against 131 losing scrips.
NFML, SPCL, Desh Garment, Republic Insurance and Prime Insurance were the day’s five major advancing issues when the major losers were NCCBLMF1, HR Textile, Makson Spinning, Quasem Drycell and Progressive Life.
Beximco topped the turnover leaders followed by Ifad Autos, CVO Petrochemical, GP and Agni System.
DSE saw ceaseless rally in the past eight trading sessions when the general index gained 157 points and the daily trade value increased by 36.0 percent. The rally reversed as sell pressure increased from the buyers who were booking profit on the shares, purchased earlier on cheap market.
Some analysts attributed the week’s opening dull trend to the news about higher market PE (price earning) that showed the average market PE ratio hit four-year high at 17.77, meaning most of the share became dearer. The PE ratio is an indicator for considering the extent of risks an investment might entail.
Troubled by prolonged political turmoil, earnings of companies declined while share prices increased, leading to the rise in the market PE ratio, said AIMS of Bangladesh, an investment management company.
It said the general sentiment, however, to some extent was similar to the previous years as 2014 too experienced some degree of lack of investors’ confidence.

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