Stocks see slight correction amid profit taking

Stocks witnessed marginal correction Wednesday, after two session's steep gain, as investors bagged profits and re-balanced their portfolios ahead of national budget to be announced on June 4.
The market witnessed see-saw movement throughout the session as intra-day volatility was around 57 points. DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled at 4,455.57 points, losing 3.71 points or 0.08 per cent, after gaining around 144 points in the past two sessions.
The two other indices -- DS30 index, comprising blue chips, and DSES index also closed marginally lower. DS30 lost 7.56 points or 0.44 per cent to close at 1,678.87 points while the DSES shed 0.39 points or 0.03 per cent to end at 1,083.35 points.
Turnover, the crucial market indicator, dropped slightly to Tk 7.82 billion, which was 3.22 per cent lower that the previous day's seven month's highest turnover Tk 8.08 billion.
"Having two consecutive sessions' robust gain, market faced a shake out as some investors realised profit and re-balanced their portfolio," said IDLC Investments, a merchant bank, in an analysis.
Participants were more focused on low priced micro-cap stocks. The micro-cap stocks rose sharply by 1.4 per cent, while large-cap eroded 0.77 per cent, said the merchant bank.
LankaBangla Securities, a stock, said, "Market took a slight correction after making large gain in last two trading sessions".
"There has been significant buoyancy in equity market as investors are expecting that market will enjoy on the reduced rate in banking sector whittling away all the business losses caused by political unrest in last few months," said the stock broker.
"The market oscillated between red and green and ended in flat as both optimist and quick profit booking group of investors were active throughout the session," said International Leasing Securities, in an analysis.
Several investors pursued for profit booking to recoup their losses as they were cautious ahead of national budget to be announced first week in the next month, said the International Leasing.
Banks' average lending rate slashed to 11.93 per cent in March'15, the lowest in two years, riding on falling cost of funds and measures aimed at reducing expenditures. The fall in lending rates will come as a relief to industries and businesses, who have long described the higher bank interest rates as a key barrier to boosting investment, LangkaBangla Securities said, quoting newspapers.  
Among the top gaining sectors, IT gained 2.38 per cent, tannery 0.42 per cent and
textile 4.55 per cent. On the contrary, Bank lost 0.37 per cent, while other loosing sectors are cement 1.51 per cent, food and allied 0.64 per cent, telecommunication 1.31 per cent.
Gainers took a modest lead over the losers as out of 306 issues traded, 152 advanced, 106 declined and 28 remained unchanged on the DSE floor.
The investors' attention was mostly focused on power, pharma and engineering - the sectors that accounted for 18 per cent, 14 per cent and 13.7 per cent respectively of the day's total turnover.
The port city bourse Chittagong Stock Exchange (CSE) however closed marginally higher with its Selective Categories Index - CSCX - gained 6.33 points to close at 8,410.43 points.
Gainers beat losers 116 to 101, with 18 issues remaining unchanged at the port city bourse that traded 29 million shares and mutual fund units, turnover value of Tk 1.18 billion.
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