Market faces correction amid low turnover

Dhaka,  Wed,  23 August 2017
Published : 18 Apr 2017, 22:23:41
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Market faces correction amid low turnover

FE Report


Stocks slipped into the red Tuesday, after a single-session break, as most of the investors were selling binge on sector specific large-cap issues.

Analysts said the market faced correction further as the risk-averse investors continued their selling mood, while some adopted 'wait-and-see' approach amid ongoing bearish market trend.

"Decline in turnover indicates that investors were staying on the sidelines and observing the market movement carefully," said an analyst at a leading brokerage firm.

The market started with a positive note, crossing the 5600-mark within the first 40 minutes of trading, but morning enthusiasm faded away as the session progressed as risk-averse investors spurred the selling spree which continued till end of the session.

Ultimately the market shed 24.60 points.

After four hours trading session, DSEX, the prime index of Dhaka Stock Exchange (DSE), finished at 5,571.52 points, losing 24.60 points or 0.44 per cent over the previous session.

After reaching record high at 5,777 points on April 4 this year since its introduction in January, 2013, the prime index of the country's premier bourse shed 185 points in the past eight consecutive sessions and advanced only 3.29 points on Monday, but fell further on Tuesday.

IDLC Investments, a merchant bank, said, "Stocks from all the cap classes declined in the day's session, in face of consistent sell pressure".

The merchant bank noted that mid-cap stocks turned out to be the day's worst sufferer. The financial institutions faced the highest correction among the major sectors, losing sharply by 2.6 per cent as sector's heavyweight LankaBangla lost 8.3 per cent alone.

The two other indices also finished lower. The DS30 index, comprising the blue-chips, fell 9.84 points or 0.48 per cent to finish at 2,056.18. The DSE Shariah Index (DSES) lost 4.46 points or 0.35 per cent to close at 1282.54.

Trading activities fell to Tk 7.05 billion, which was 7.23 per cent lower than the previous day's Tk 7.60 billion.

Financial institutions maintained its dominance in turnover chart for second day, capturing 19 per cent of the day's total turnover value, followed by textile 15 per cent and bank 14 per cent.

"Investors' indecisive mindset and consciousness of further correction pushed the investors to stay in the sidelines," said commented International Leasing Securities, a stockbroker, in its regular market analysis.

The stockbroker noted that price correction in the financial institution, engineering and textile sectors stocks dragged the market down.

All the large-cap sectors showed negative performance except food and allied and fuel and power, which inched up by 0.12 per cent and 0.08 per cent respectively.

The financial institutions posted the highest loss of 2.6 per cent, followed by engineering 0.82 per cent and pharmaceuticals 0.32 per cent. Telecommunication and bank also lost 0.19 per cent and 0.03 per cent respectively.

The losers took a strong lead over the gainers as out of the 327 issues traded, 204 closed lower, 91 closed higher and 32 remained unchanged on the DSE trading floor.

LankaBangla Finance topped the DSE turnover with about 13.95 million shares of Tk 762 million changing hands, followed by BDCOM Online, City Bank, Shahjibazar Power and Regent Textile Mills.

ICB Employees Provident Fund Scheme One was the day's highest gainer, posting a 10 per cent rise while IFIC Bank was the worst loser, plunging by 25.38 per cent following its price adjustment after record date.

The port city bourse, the Chittagong Stock Exchange (CSE), also finished lower with its Selective Categories Index - CSCX - losing 47.17 points to settle at 10,463.

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