Stocks opened marginally lower on Monday as investors locked in profits following a strong four-session rally that had pushed the benchmark index to a 22-month high.

The market had gained more than 165 points over the previous four trading sessions, driven by sustained buying in large-cap and fundamentally strong stocks. Investor sentiment was further strengthened by tax rebate incentives for equity investments announced in the national budget, prompting a broad-based rally.

However, market participants said the recent surge encouraged many investors to book profits, putting pressure on share prices in early trading.

"The market has rallied significantly over the past few sessions. Profit-taking after such a sharp rise is a healthy and expected development," said a leading stockbroker.

The benchmark DSEX index of the Dhaka Stock Exchange (DSE) fell 14 points, or 0.25 per cent, to 5,705 by 11:30 am.

Despite the decline, trading activity remained robust. Turnover reached Tk 6.14 billion by 11:30 am, indicating that investor participation continued to be strong.

Beximco remained the centre of investor attention, with its share price rising around 2.0 per cent to Tk 31.80 after soaring 9.86 per cent in the previous session. The stock has been recovering after suffering a nearly 75 per cent correction following the withdrawal of its floor price on June 9.

The company also topped the turnover chart, with shares worth Tk 520 million changing hands during the period.

Market sentiment also received support after trading in the Global Depository Receipts (GDRs) of Beximco Pharmaceuticals resumed on the London Stock Exchange (LSE) on Friday. Trading had previously been suspended because of delays in the submission of the company's financial reports.

However, market breadth remained negative, reflecting widespread profit-taking. Of the issues traded by 11:30 am, 143 advanced, 175 declined and 74 remained unchanged

The Chittagong Stock Exchange (CSE) also witnessed a weak start. Its benchmark CASPI index lost 16 points to 15,337, while the CSCX index fell 13 points to 9,385 in early trading.

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