Stocks fall as investor enthusiasm evaporates

Stocks ended lower on Sunday as cautious investors chose to liquidate their holdings, worried over a probable shift in market momentum.
The prime index of the Dhaka Stock Exchange (DSE) fell 125.19 points to settle at 5,778.64.
The premier bourse of the country observed a setback led by heavy sell pressure in the major stocks as cautious investors sought to sell holdings due to concerns over a probable shift in market momentum and a lack of leadership in the stock market regulator, said EBL Securities.
The blue-chip index -- DS30, a group of 30 prominent companies, was reduced by 52.73 points to 2126.61, while the DSES Index, which represents Shariah-based companies, saw a 24.54-point erosion to 1,240.19.
The plunge of DS30 was caused by price erosion of 26 stocks.
Of the blue chip stocks, only Islami Bank and Olympic Industries experienced appreciation. Two others remained unchanged.
Market leaders, such as Square Pharma, Grameenphone, and British American Tobacco Bangladesh Company, which had propelled the market in the recent sessions, dragged the broad index on Sunday.
On the day, Square Pharma solely wiped out 16.6 points from the DSEX, followed by BATBC, Grameenphone, BRAC Bank, and Renata.
Because of investors' thin participation, the turnover was also low -- Tk 4.81 billion, down 52 per cent from the previous trading day.
Investors' participation was concentrated mostly on bank stocks, which grabbed 18.2 per cent of the market turnover, followed by pharmaceuticals & chemicals and food & allied sectors.
Except for Islami Bank, 35 banks shed market value on Sunday.
Sellers dominated the market throughout the session as investors opted to escape further losses in their portfolios amidst prevailing volatility and shied away from taking fresh positions in equities amidst uncertainties regarding the market's trend, according to EBL Securities.
The majority of the stocks saw a price decrease, as out of the 398 issues traded, 18 closed higher, 366 ended lower, and 14 remained unchanged on the DSE trading floor.
Grameenphone was the most-traded stock with shares worth Tk 492.63 million changing hands, followed by BRAC Bank., British American Tobacco Bangladesh, Square Pharmaceuticals and Olympic Industries Ltd.
The Chittagong Stock Exchange (CSE) also ended lower with its All Share Price Index (CASPI) losing 316 points to settle at 16715 and the Selective Categories Index (CSCX) losing 194 points to settle at 10,065.
The port city bourse traded 2.3 million shares and mutual fund units with a turnover volume of Tk 76 million.

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