DSE sinks below 6,300 on corrections of stocks behind rally

The broad index of the Dhaka Stock Exchange on Tuesday sank below 6,300 points after 14 sessions as a section of jittery investors executed sell-offs while others remained silent in the absence of any specific market direction.
Amid the selling pressure the transactions volume declined moderately, dragging daily turnover down Tk 7 billion after a month.
Market operators said many investors opted to make cautious moves ahead of the upcoming monetary policy.
Investors were also contemplating tax benefits mentioned in the proposed income tax act. The draft of the new law has been placed in parliament and will be passed within the outgoing fiscal year.
Of the sectors that recently propelled the market witnessed correction. Among those, the life insurance sector experienced the highest price erosion.
Trust Islami Life Insurance on Tuesday declined for the first time since its debut trading on May 11. The company's share price jumped 741 per cent between May 11 and June 12, but on Tuesday, it appeared on the chart of the day's top 10 losers. Shedding 6.91 per cent or Tk 5.70, Trust Islami Life Insurance closed at Tk 76.80.
The Dhaka Stock Exchange (DSE) opened the day's session positively and the DSE broad index DSEX gained 16 points within 15 minutes.
Later, the DSEX exhibited a straight fall and went down the day's starting mark within the next 12 minutes as a section of investors exerted sell pressure while others were on the sideline.
After exhibiting ups and downs, the DSEX finally closed the session with a loss of 11.68 points extending the losing streak for third consecutive session.
It lost a total of 54 points in the last three sessions and finally closed at 6298.91 points on Tuesday.
On the other hand, the turnover volume declined 33 per cent from the previous day to Tk 6.70 billion, the lowest since May 16.
The market witnessed persistent setbacks for three straight sessions owing to uncertainties ahead of the upcoming monetary policy statement, said EBL Securities.
The central bank will unveil soon its monetary policy for the first six months of the next fiscal year.
Many investors weigh monetary policy to assess possible liquidity flow in the market to decide whether to inject fresh funds.
Shariah index declined marginally while the blue chip index DS30 remained unchanged.
A majority of the listed securities, except for the ones that has remained stuck at the floor for a long time, experienced price corrections on Tuesday. Only 45 advanced while 121 declined on the premier bourse DSE.
Of the major sectors which witnessed correction, life insurance declined 1.8 per cent, general insurance 1.6 per cent, and services & real estate 0.7 per cent.
Investors' participation was mostly concentrated on life insurance companies which contributed 21.3 per cent to the market turnover, followed by pharmaceuticals & chemicals 12.1 per cent and food & allied 8.4 per cent.
Navana Pharmaceuticals topped the chart of the most-traded stocks with a transaction value of Tk 422 million, followed by Sea Pearl Beach Resort & Spa, and Meghna Life Insurance.
Navana Pharma was also the day's number one gainer on the DSE.

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