Stocks extended the losing spell for the two consecutive sessions Wednesday, with turnover dipping below Tk 7.0 billion-mark, as cautious investors continued their selling spree.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), lost about 222 points in the past 10 trading sessions, after reaching the highest level at 5777 points since its introduction in January 2013, except 3.29 points gain on Monday.
Market insiders said gradual decline in turnover and stocks price indicates that most of the investors remained on the sidelines and are observing the market movement carefully amid lack of market triggers.
DSEX fell sharply within the first 30 minutes of the session, losing more than 30 points, before recovering in the subsequent hour. However, heavy sell-off trimmed the first hour's gain during the rest of the session with few minor spikes.
Finally, DSEX, the prime index of DSE, finished at 5,555, losing 16.42 points or 0.29 per cent over the previous session.
"The market opened lower reaching its bottom at 5,540 points in the first 30 minutes. From that point, index moved upward and reached the highest at 5,574 points. However, it failed to hold its positive position as the session progressed amid sale pressure," commented the LankaBangla Securities, a stockbroker.
The two other indices also closed lower. The DS30 index, comprising the blue-chips, fell 1.01 points or 0.05 per cent to finish at 2,055.16. The DSE Shariah Index (DSES) lost 2.83 points or 0.22 per cent to close at 1279.71
Turnover, the another important indicator of the market, dipped below Tk 7.0 billion after three sessions and amounted to Tk 6.84 billion, which was 2.98 per cent lower than the previous day's Tk 7.05 billion.
Financial institutions maintained its dominance in turnover, capturing 16 per cent of the day's total turnover value, followed by bank 14 per cent and fuel and power 13 per cent.
International Leasing Securities, a stockbroker, said, "The market fell further as the shaky investors continued their profit booking tendency in anticipation of further fall, while some adopted 'wait-and-see' approach amid ongoing bearish market trend".
The stockbroker noted that the heavy sell pressure in bank, textile and financial institution sectors pushed down the market at closing.
"Trading activities fell further as the investors refrained themselves to inject fresh fund in the current gloomy market situation," said the stockbroker.
The large-cap sectors showed mixed performance. Food and allied posted the highest gain of 1.08 per cent, followed by telecommunication 0.32 per cent and fuel and power 0.28 per cent and engineering 0.03 per cent.
The heavyweight bank sector faced the highest correction of 1.28 per cent followed by financial institutions 0.51 per cent and pharmaceuticals 0.03 per cent.
The losers took a modest lead over the gainers as out of the 327 issues traded, 146 closed lower, 144 closed higher and 37 remained unchanged on the DSE trading floor.
Shahjibazar Power Company topped the DSE turnover with about 2.56 million shares of Tk 386 million changing hands, followed by LankaBangla Finance, Saif Powertec, BDCOM Online and City Bank.
Islamic Finance was the day's highest gainer, posting a 9.71 per cent rise while Al-Arafah Islami Bank was the worst loser, plunging by 9.80 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 18.32 points to settle at 10,445.
Losers beat gainers as 108 issues closed lower, 102 closed higher and 23 remained unchanged on the CSE trading floor.
The port city bourse traded 20.16 million shares and mutual fund units worth Tk 534 million in turnover.