Stocks end flat amid volatility

Stocks closed flat Tuesday after witnessing volatility in early trading as investors remained mostly cautious after global stocks slumped on Monday.
Market slipped sharply in early trading and after initially showing a lack of direction, stocks have recovered over the course of the trading day. The benchmark index of the Dhaka Stock Exchange (DSE) edged down slightly by 1.06 points or 0.02 per cent to settle at 4,792.93.
Chinese Shanghai Composite Index tumbled 7.6 per cent for a second day after worries over China's slowing growth triggered a global sell-off while other global stocks mostly on recovery mood on Tuesday.
Market insiders said the local investors were worried following sharp fall of global stocks prices on Monday though there is no direct relationship. "It's a 'psychological' impact only," said an analyst.
 "Investors might have made panicky sell-off in the morning following the sharp fall in global stock prices Monday. However, the 'black Monday' effect faded out later and the market bounced back, closing almost flat," said International Leasing Securities, a stockbroker, in an analysis.
The two other indices, however, managed to close in green territory. The DS30 index, comprising blue chips, gained 0.86 points or 0.04 per cent to finish at 1,832.92. The DSE Shariah Index (DSES) advanced 0.28 points or 0.02 per cent to end at 1,178.31.
Turnover stood at Tk 4.56 billion on DSE, which was 14.28 per cent higher than the previous day's two months lowest value of Tk 3.99 billion.
 "Activity from the participants remained poor despite increased in the daily market turnover over the previous day amid watchfulness," said the International Leasing Securities.
IDLC Investments, a merchant bank, said, "Stretching last session's depression, market started in a negative vibe and freely fell in initial 30 minutes. The sharp decline lured in buyers from the sidelines who suspected that sellers overreacted".
This excess fund mopped up the supply of securities in the bourse, as prices recovered quickly. Over the session, buyers remained active, ultimately holding the market to previous day's level, said the merchant bank.
Major sectors posted mixed performance. NBFIs gained 2.43 per cent followed by cement 0.31 per cent and telecommunication 0.16 per cent. Power closed the session with no significant change.
Food and allied and banks experienced thin correction of 0.25 per cent and 0.14 per cent respectively. Pharmaceuticals lost an insignificant of 0.08 per cent.
The losers took a lead over the gainers as out of issues traded 317 issues traded, 136 closed lower, 123 higher and 58 remained unchanged on the DSE trading floor.
Activities increased in the major bourse where volume and trade were up 13.34 per cent and 4.12 per cent respectively. A total number of 0.099 million trades were executed with trading volume of 116.83 million securities.
The port city bourse Chittagong Stock Exchange (CSE) also closed flat in red with its Selective Categories Index - CSCX - lost 15.95 points to end at 8,941.03.
Losers beat gainers 142 to 64, with 35 issues remained unchanged on the port city bourse that traded 8.88 million shares and mutual fund units with a value of Tk 322 million.
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