Stocks witnessed yet another bearish session Tuesday, extending the losing spell for ten sessions in a row, as investors kept their selling spree on sector-wise issues ahead of Ramadan.
Market insiders said the ongoing pessimism, disappointing quarterly earnings results of most of the companies coupled with upcoming holy month of Ramadan, continued to prompt investors to cash in on stocks.
"Unsatisfactory first quarter earnings results of most of the companies, especially banks, eroded investors' confidence and persuaded them for selling shares," said an analyst at a leading brokerage firm.
He noted that the market fell further as negative psychology developed in investors' mind following the poor first quarter earnings results of the banks.
Meanwhile, Dhaka bourse signed the much-talked-about share purchase agreement with the Chinese consortium on Monday for strategic partnering. But, the news failed to make any positive impact on trading.
Following the nine days' price correction, the market opened on a positive note, but failed to sustain as the session progressed. Finally, DSEX fell more than 8.0 points while CSE All Share Price Index lost 23 points at closing.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 8.68 points or 0.15 per cent to settle at 5,548. DSEX shed more than 265 points in the past 10 consecutive sessions.
"Investors' sentiment regarding the market remained shaky amid ongoing earnings declaration coupled with upcoming national budget," commented EBL Securities, a stockbroker, in its regular market analysis.
The two other indices also followed the suit. The DS30 index, comprising blue chips, fell 3.73 points or 0.18 per cent to finish at 2,072 while the DSE Shariah index lost 0.23 point or 0.02 per cent to settle at 1,300.
The trading activities remained low as the total turnover on the major bourse amounting to Tk 3.55 billion, which was 7.25 per cent higher than the previous day's turnover of Tk 3.31 billion.
Engineering sector dominated the turnover chart - the sector accounted for 22 per cent of the DSE's total turnover, followed by textile with 12 per cent and miscellaneous 10 per cent.
According to International Leasing Securities, the market started with optimistic note, but the selling pressure from the risk-averse investors pushed down indices in the later part of the session.
The stockbroker noted that most of the investors were inactive and remained on the sidelines to safeguard their position amid an ongoing bearish market trend ahead of Ramadan.
Among the major sectors, food & allied witnessed the highest correction of 1.10 per cent, followed by telecommunication with 0.60 per cent, non-bank financial institutions 0.20 per cent and banking 010 per cent.
Only fuel & power and pharmaceuticals posted positive movements with gaining 0.70 per cent and 0.20 per cent respectively.
The losers took a modest lead over the gainers as out of 334 issues traded, 152 closed lower, 123 ended higher and 59 issues remained unchanged on the DSE trading floor.
Western Marine Shipyard topped the DSE turnover chart for the fourth day with shares worth nearly Tk 279 million changing hands, closely followed by Beximco, United Power, Legacy Footwear and Queen South Textile.
Queen South Textile was the day's highest gainer, posting a gain of 9.80 per cent while Shympur Sugar Mills was the day's worst loser, losing 5.35 per cent.
The port city's bourse Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index - CASPI - shedding 14 points to settle at 17,127 points and Selective Categories Index - CSCX - losing 8.0 points to finish at 10,353.
Here too, the losers beat the gainers as 118 issues closed lower, 81 ended higher and 33 remained unchanged on the CSE.
The port city bourse traded 6.69 million shares and mutual fund units worth more than Tk 298 million in turnover.
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