Profit-booking pulls down stock prices

The market extended losing streak for the fifth running session Wednesday with marginal improvement in turnover as profit-booking and panic dominated throughout the session.
Meanwhile, Emerald Oil Industries, which made debut Wednesday, gained 400 per cent from its initial public offering (IPO) price of Tk 10. The newcomer also topped the turnover chart with a liquidity of Tk 361.3 million.  
The market opened with a negative note and the downtrend continued till the market closure. At the end of the session, the prime index of the Dhaka Stock Exchange (DSEX) shed 35.76 points or 0.78 per cent and closing the session at two-month low to 4,519.02 points.
The other two indices also ended lower. The DS30, comprising blue chips lost 11.67 points or 0.71 per cent to close at 1,624.31 points. The DSE Shariah Index (DSES) went down by 11.31 points or 1.13 per cent to close at 983.70 points.
Turnover value on DSE stood at Tk 3.38 billion, registering 4.97 per cent increase over the previous session's value of Tk 3.22 billion.
"The market witnessed a sharp decline as the investors' selling spree was evident," commented International Leasing Securities, in its daily market analysis.
"The bourse observed strong waves of sell pressure as profit booking and panic dominated throughout the session," said IDLC Investments.
With pessimism displaying persistence over last few sessions, market sentiment retracted further. Consequently, losing 238 points in last fifteen sessions, prime index came down to 4,500-level, said the merchant bank.
"Prolonged scrip-wise volatility spurred investors' greater intention on re-balancing portfolio. Coupled with this, market activity turned sluggish and averaged to Tk 3.2 billion in last three sessions," the merchant bank added.
"The market has entered into an oversold position after declining for last five consecutive sessions over jittery attitude of investors," observed LankaBangla Securities.
Market got spooked as investors became more concerned about the market over heavy sell-off on major heavyweights sectors, the stock broker said.
On the economic front, Bangladesh Bank has upgraded their estimation of countries economic growth by 0.01 per cent in its latest second quarter report reckoning the forecasted gross domestic product (GDP) range from 5.8 per cent to 6.1 per cent, the stock broker said.
"For now, investors are eyeing on a set of improved economic indicators to knock into the target," the stock broker added.
"As the index is getting near towards its support zone, those who can capitalize at the bottom level will have the chance to reap huge benefit," observed Zenith Investments.
The losers took a strong lead over the gainers as out of 298 issues traded, 208 declined, 61 advanced and 29 issues closed unchanged on the DSE floor.
All other major sectors posted losses while change in market capitalization of banking sector remained flat after a volatile movement.
Pharmaceuticals lost the most with 1.72 per cent decline followed by food & allied 1.22 per cent and fuel & power 0.75 per cent. Telecommunications and NBFIs edged down by 0.19 per cent and 0.33 per cent respectively.  
Activities increased in the major bourse (DSE) where volume and trade were up 4.98 per cent and 15.67 per cent. A total of 0.096 million trades were executed with 60.96 million securities of trading volume.
The market capitalization of the DSE stood at Tk 2,838.64 billion against Tk 2,854.52 billion in the previous session.
Food & allied sector made the highest contribution ---16.4 per cent to total market turnover following the trade of the new stock Emerald Oil.
United Leasing Company was the day's worst losers, slumping by 11.46 per cent following its price adjustment after record date.
The port city bourse --- the Chittagong Stock Exchange (CSE) also ended lower for the fifth session with its Selective Categories Index - CSCX lost 68.16 points to close at 8,785.12 points.
Losers beat gainers 172 to 35, with 17 issues remaining unchanged at the port city bourse that traded 7.45 million shares and mutual fund units, turnover value of Tk 378.75 million.