Stocks snap rally as profit-taking drags

Stocks on Thursday ended lower, snapping its recent rally as persistent profit-taking in major stocks weighed on the market throughout the session.

The broad-based DSEX index of the Dhaka Stock Exchange (DSE) fell 25.9 points, or 0.44 percent, to close at 5,900 points from the previous session's 5,926 points.

Trading remained volatile from the opening bell, but sustained selling pressure in recently gained stocks intensified during the day, pushing the market into negative territory by the close.

Market turnover also declined sharply by 26.2 percent to Tk 11.2 billion from Tk 15.2 billion in the previous trading session, despite steady investor participation.

The pharmaceutical sector dominated turnover, accounting for 17.4 percent of total transactions, followed by textiles with 13.2 percent and general insurance with 10.6 percent.

Most sectors ended lower, with life insurance losing 1.7 percent, general insurance 1.4 percent and cement 1.3 percent. In contrast, tannery gained 1.2 percent, while travel and leisure rose 0.6 percent and information technology advanced 0.5 percent.

Of the 396 issues traded on the premier bourse, 102 advanced, 234 declined and 60 remained unchanged.

Meanwhile, the Chittagong Stock Exchange (CSE) also closed in the red. The Selective Categories' Index (CSCX) dropped 38.5 points, while the All Share Price Index (CASPI) declined 55.0 points at the close of trading.