Key index dips below 4,400 points-mark

Stocks witnessed sharp decline Sunday with key index of the prime bourse dipped below 4,400 points mark as investors went for selling spree on textile, pharmaceuticals and fuel and power stocks.
DSEX, the prime index of the Dhaka Stock Exchange (DSE) came down below 4,400 points mark after four trading sessions and ended at 4,361.58 points, shedding 47.21 points or 1.07 per cent.
The other two indices also saw sharp decline. The DS30, comprising blue chips lost 19.87 points or 1.21 per cent to close at 1,618.20 points. The DSE Shariah Index (DSES) dropped 10.51 points or 1.03 per cent to close at 1,007.71 points.
The total turnover on DSE came down further to Tk 3.14 billion, registering a decline of 14.81 per cent over the previous session's value of Tk 3.68 billion.
"Market dragged down to red by strong selling pressure on textile, pharmaceuticals and fuel and power stocks," commented LankaBangla Securities, in its daily market analysis.
"Investors have continued their cautious mood amid concern over lower private investment and the sluggish pace of job creation," said the stock broker.
"The investors went for selling spree as the market is still plagued with sluggish mood," said International Leasing Securities.
IDLC Investments, a merchant bank, said that the investors seemed focusing on market level dynamics. In absence of any significant issues, waves of profit booking flooded the market.
Eventually, support level of 4,400 points had to give away, losing 47 points, succumbing to the large selling pressure.
"After neutralizing budget-specific issues, investors started thinking about upcoming half-yearly and yearly earnings/corporate declarations," said the merchant bank adding that the investors' persistent follow of 'wait and see' approach caused activity to freeze.
Meanwhile, debutant Peninsula Chittagong couldn't encourage on the day's participation much. Subsequently, the stock gained only 22.33 per cent and captured 10.36 per cent of day's total turnover.
The losers took a strong lead over the gainers as out of 291 issues traded, 212 declined, 47 advanced and 32 closed unchanged on the DSE floor.
Activities mixed in the major bourse (DSE) where volume was down by 14.73 per cent but trade was up by 22.97 per cent. A total number of 0.104 million trades were executed with 65.61 million securities of trading volume.
The total market capitalisation on DSE stood at Tk 2,898.26 billion against Tk 2,909.23 billion in the previous session.
All the major sectors ended lower except telecommunications which gained 2.48 per cent. Fuel and power was the biggest loser as it edged down by 2.63 per cent - followed by pharmaceuticals 1.69 per cent and NBFIs 1.65 per cent. Food and allied and banks lost 1.27 per cent and 0.40 per cent respectively.
GP dominated the day's topped turnover chart with shares worth Tk 412.50 million changing hands followed by newly listed Peninsula Chittagong, BSRM Steels, Lafarge Surma cement and Meghna Petroleum.
The investors mainly focused on telecommunications, travel and leisure, engendering and textile sectors, accounted for 14.71 per cent, 12.06 per cent, 10.89 per cent and 10.77 per cent of day's total turnover.