Turnover rises on DSE
FE Report
Stocks extended their losing streak for the third day in a row Wednesday as investors’ selling binge continued amid lack of confidence and direction.
The market opened with a positive note but could not sustain, as a result, the downbeat accelerated for third day and saw another depressing trading session.
DSEX, the prime index of the DSE went down further by 30.30 points or 0.70 per cent to close at 4,252.94 points, lowest since December 29, 2013. DSEX suffered a loss of around 121 points or 2.76 per cent in the last three consecutive sessions.
The two other indices also ended in the red. The DS30 index, comprising blue chips lost 10.63 points or 0.65 per cent to close at 1,621.56 points. The DSE Shariah Index (DSES) shed 3.52 points or 0.33 per cent to close at 1,041.46 points.
The total turnover on DSE, however, crossed Tk 5.0 billion-mark and amounted to Tk 5.25 billion, which was 19.58 per cent higher compared to previous day's value of Tk 4.39 billion.
The investors' activity was mostly focused on power, pharma and engineering - the sectors that accounted for 31 per cent, 14 per cent and 13 per cent respectively of the day's total turnover.
"Lack of confidence and direction among the investors are clearly visible as the market showed a lot of volatility throughout the whole trading session," said LankaBangla Securities, a stock broker, in an analysis.
IDLC Investments, a merchant bank, said, "Market kept on going in reverse gear, wiping out investors' gain from risk taking".
The retreat in stock prices plunged down DSEX by another 30 points to close at 4,253 points, which was the lowest since December 2013, erasing the cumulative return in the market level during past 16 months, said the merchant bank.
"Stocks closed lower for the third day amidst shaky investors' confidence," said International Leasing Securities.
The market started in green but failed to sustain as sellers, who preferred short-term trading strategy, outperformed taking buyers, said the International Leasing.
Several issues from fuel and power sector caught most of the investors' concentration also experienced notable price correction along with issues from bank and telecommunication sector, which contributed to index fall, said the International Leasing.
Among the major sectors only cement advanced in the session by 1.60 per cent. All the other large-cap sectors retraced. Fuel and power witnessed heavy correction of 1.87 per cent. Banks and NBFIs in the financial sector lost 1.32 per cent and 0.73 per cent respectively.
The port city bourse, Chittagong Stock Exchange (CSE) also closed lower with its Selective Categories Index - CSCX - lost 96.21 points to close at 7,957.16 points.
Losers beat gainers 146 to 70, with 22 issues remaining unchanged at the port city bourse that traded 11.08 million shares and mutual fund units, turnover value of Tk 420.55 million.
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