Stocks edged lower for the second running session Tuesday with volatile trading throughout the session as cautious investors continued to book profits.
After climbing more than 21 points within first 25 minutes, the market swung between positive and negative territory several time, but landed in the red at close as sellers marginally beat buyers.
Trying to break the 4,600 points level twice, DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled at 4,574.05, falling 11.05 points or 0.24 per cent.
Analysts said the market observed further correction, as investors were still busy taking profits from their trades.
"After worries emanated from uncertainty in the political arena, weak economic data beefed up volatility in the market," said LankaBangla Securities, a stockbroker, in its regular market analysis.
"Some buyers came a week ago, but as the current week went through the pressure induced by weak economic condition, stocks' price drifted lower and buyer were quick to run back out," said the stockbroker.
Turnover on the DSE also fell to Tk 4.43 billion, which was 24.4 per cent lower than the previous day's three months' high turnover of Tk 5.86 billion.
The investor's attention mostly focused on power, bank and engineering - the sectors that accounted for 18 per cent, 17 per cent and 15 per cent respectively of the day's total turnover.
IDLC Investments, a merchant bank, said, "As investors confidence on the current uptrend is yet to solidify, broad index DSEX got sold down multiple times, while it reached beyond 4,600 points level".
"The apparent consolidation phase is encountering profit booking in most of the issues, but sale pressure is still levelled, facilitating a sideway move for the indices," said the merchant bank.
"The market participants preferred to book unrealized gain on their investment over the price appreciation in recent few sessions, turning the bourse into red despite modest opening," said International Leasing Securities, a stockbroker.
The stockbroker noted that selling frenzy was prevalent in food and allied, pharma and telecom sector while bank and financial institutions sector enjoyed buoyancy.
All large-cap sectors declined except banks and non-bank financial institutions which gained 1.32 per cent and 0.26 per cent respectively.
Cement and food and allied lost a significant 1.06 per cent and 0.96 per cent respectively. Telecommunication retraced by 0.60 per cent. Pharmaceuticals closed 0.54 per cent lower. Power experienced a loss of 0.26 per cent.
Losers took a strong lead over the gainers as out of 321 traded issues, 212 closed lower, 74 higher and 35 remained unchanged on the DSE trading floor.
Saif Powertec was the day's top turnover chart with shares worth nearly Tk 210 million changing hands followed by Al-Arafa Islami Bank, IFAD Autos, Summit Power and Beximco Pharma.
Al-Arafa Islami Bank was the day's best performer, posting a rise of 9.65 per cent while Khan Brother PP Woven Bag was the day's worst loser, plunging 15.23 per cent following its price adjustment after record date.
The port city bourse Chittagong Stock Exchange (CSE) also edged lower with its Selective Categories Index - CSCX -shedding 21.49 points to end at 8,506.66.
Losers beat gainers 152 to 66, with 21 issues remaining unchanged on the port city bourse that traded 9.35 million shares and mutual fund units with a value of Tk 263 million.
babulfexpress@gmail.com
Blogger Comment
Facebook Comment