Stocks run out of steam as investors turn cautious

Dhaka bourse closed lower on Monday, extending the losing streak for a second consecutive session as many investors offloaded shares to lock in profits from the last week's bullish run in the market.
The fuel oil price surge has also renewed fears of an economic slowdown, prompting investors to adopt a cautious stance, which was reflected in the market, according to market operators.
The benchmark DSEX index of Dhaka Stock Exchange (DSE) opened the session on a positive note but it started declining soon after. It tried to go up several times but the downtrend continued until the end of the session.
Finally, the DSEX settled 45.05 points or 0.71 per cent lower at 6258.95.
Although many investors feel that they are now in a comfort zone because of the reintroduction of 'floor price', experienced investors are assessing the outlook for the market following the rise in fuel oil prices, which would lead to an increase in the cost of living, said a merchant banker.
Two sub-indices of the DSE also ended lower. The DS30 index, comprising blue-chip securities, lost 0.97 per cent or 21.96 points to close at 2,237.60 points. And the Shariah-based DSES index finished 0.62 per cent or 8.59 points lower at 1,368.23.
Of 380 issues traded on the DSE, 103 advanced, 211 declined and 66 others remained unchanged.
"Equity indices of the prime bourse continued their downward trend for the second consecutive day as investors were unnerved over the recent surge in fuel prices that exacerbated the ongoing macroeconomic tensions," said a market review of EBL Securities.
The market turnover, a crucial indicator, clocked in at Tk 10.83 billion, down 3.03 per cent from the previous session's turnover of Tk 11.17 billion.
Of the total turnover, Tk 627 million came from transactions executed in block board trade.
"Jittery investors converted their investments into cash fearing the price hike of necessities driven by the price hike of fuel oil that may raise the overall inflation by end of the year," said a market review of International Leasing Securities.
Of the major sectors which saw price correction, the banking sector lost 0.9 per cent, engineering 0.1 per cent, financial institutions 1.5 per cent, fuel & power 0.3 per cent, pharmaceuticals & chemicals 0.7 per cent, telecommunication 0.1 per cent and textile 0.8 per cent.
Of the sectors that witnessed price appreciation, the ceramic sector advanced 1.0 per cent, life insurance 0.3 per cent, and services & real estate 1.7 per cent.
Investors' participation was concentrated mostly on textile sector which grabbed 24.8 per cent of the market turnover followed by miscellaneous sector (10.7 per cent), pharmaceuticals & chemicals (10.1 per cent) and engineering (10.0 per cent).
Beximco topped the turnover chart with shares worth Tk 809 million changing hands, followed by Malek Spinning Mills (Tk 447 million), Coppertech Industries (Tk 321 million), Olympic Industries (Tk 311 million) and Intraco Refueling Station (Tk 236 million).
Coppertech Industries topped the gainers' chart, advancing 9.78 per cent or Tk 4.0 to close at Tk 44.90 each.
Olympic Industries was the worst loser, shedding 6.87 per cent or 9.80 to close at Tk 132.90 each.
All indices of Chittagong Stock Exchange (CSE) also ended lower, with its benchmark CASPI index, settling 0.52 per cent or 96.58 points lower at 18438.41 points.
Of 273 issues traded on the port-city bourse, 91 advanced, 121 declined and 61 remained unchanged while the turnover stood at Tk 183.71 million.

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