FE Report
Stocks returned to the red Wednesday, after previous session's marginal gain, with turnover falling further, as investors remained pessimistic about a stable political situation in coming days.
"Investors remained in cautious mood as they are speculating probable political instability following 'widespread vote-rigging' in the City Corporation Elections," said an analyst.
The market moved significantly between red and green. DSEX, the prime index of the DSE slipped 19.28 points or 0.46 per cent to close at 4,099.20 points.
The two other indices also ended in the red. The DS30 index, comprising blue chips lost 4.85 points or 0.30 per cent to close at 1,562.93 points. The DSE Shariah Index (DSES) fell 8.46 points or 0.83 per cent to close at 1,005.17 points.
Turnover, the most important indicator for the market, remained sluggish. The total turnover on DSE stood at Tk 3.16 billon, which was 2.16 per cent lower compared to previous session's value of Tk 3.23 billion.
The investors' activity was remained mostly focused on power, pharma and engineering - the sectors that accounted for 22.6 per cent, 20.4 per cent and 14.2 per cent respectively of the day's total turnover.
"As the investors remained pessimistic about a stable political calm in coming days, they continued liquidating their holdings in adverse prices," said IDLC Investments, a merchant bank, in an analysis.
Multiple corporate declarations entered into the market and played vital role in price movements, said the merchant bank. At least 20 listed companies recommended dividend Wednesday.
ACI Formulations appreciated 10 per cent following positive declarations, while Beximco Synthetics and Shinepukur Ceramics plummeted 18 per cent each with disappointing earnings coupled with no dividend declaration.
LankaBangla Securities said: "Market continued to struggle below the 4,150-mark amid panic sell throughout the day".
Stocks opened negative in first hour on account of boycott of the polls during voting time in the Dhaka South, North and Chittagong City Corporations by the BNP-backed candidates and some other candidates, said the stock broker.
DSEX hit low on the 4,070 in morning trading. However, after passing a volatile trading session bank and power stocks lent support to the benchmark index to recover some early loss in stocks.
"Market has currently reached to an oversold position on continual selling pressure after breaking 'psychological' threshold of the 4,200-mark in last week," said the stock broker.
The port city bourse, Chittagong Stock Exchange (CSE) also closed lower with its Selective Categories Index - CSCX - lost 11.76 points to close at 7,681.77 points.
Losers beat gainers 130 to 62, with 26 issues remaining unchanged at the port city bourse that traded 16.49 million shares and mutual fund units, turnover value of Tk 389.98 million.
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