Stocks slip into red despite BB move

Stocks slipped into the red on Sunday, after remaining flat in the past two trading sessions, as late hours sell-offs wiped out early gains.
The market opened on upbeat note and the key index soared 38 points within first 25 minutes riding on the news of interest rate cut on stock investment fund. But, late hours profit booking sell-offs eroded all the initial gains.
At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 7.16 points or 0.14 per cent to settle at 4,971.
Meanwhile, Walton Hi-Tech Industries shares continued to soar as its price closed at Tk 609.50 on Sunday, gaining 7.50 per cent over the previous session.
The company's share jumped to Tk 357.50 or 142 per cent in the just three straight sessions on issue price of Tk 252 each. There were few sellers compared to buyers, for which its trade came to a halt at one point like previous two days.
Market operators said the cautious investors continued booking profit on majors sectors' issues despite the news that the central bank reduced the interest rate on stock investment fund.
The Bangladesh Bank on Thursday reduced the interest rate on borrowing from its special investment fund to 4.75 per cent from 5.0 per cent, aimed at helping the country's lenders increase their stock investment capacity.
Top negative index contributors were Grameenphone, British American Tobacco, National Life, Beximco and Berger Paints, according to data from amarstock.com, a stock market data analyst.
Two other indices also ended lower. The DS30 index, comprising blue chips, gained 10.41 points to finish at 1,690 and the DSE Shariah Index fell 4.71 points to close at 1,121.
Turnover, a crucial indicator of the market, crossed Tk 10 billion-mark after four sessions and amounted to Tk 10.34 billion, which was 17 per cent higher than the previous session's Tk 8.81 billion.
Among the major sectors, food, telecom, power and pharma lost 1.50 per cent, 1.40 per cent, 0.50 per cent and 0.40 per cent respectively.
On the other hand, financial institutions sector posted the highest gain of 5.10 per cent, followed by engineering with 3.40 per cent and banking 0.40 per cent.
Losers outnumbered the gainers as out of 357 issues traded, 210 closed lower, 106 ended higher while 41 issues remained unchanged on the DSE trading floor.
A total number of 205,197 trades were executed in the day's trading session with a trading volume of 391.66 million shares and mutual fund units.
The market-cap on the premier bourse, however, rose to Tk 3,952 billion on Sunday, from Tk3,946 billion in the previous session.
The insurance sector continue to dominate the turnover chart with Sandhani Life topped the turnover list with shares worth nearly Tk 436 million changing hands, closely followed by Sonar Bangla Insurance, Beximco Pharma, LankaBangla Finance and Eastland Insurance.
Asia Pacific Insurance was the best performer, posting a gain of 10 per cent while Ring Shine Textiles was the worst loser, losing 8.97 per cent following its factory shutdown news.
The Chittagong Stock Exchange also ended marginally lower with its All SharesPrice Index (CASPI)-losing 23 points to close at 14,186 while the Selective Categories Index - CSCX shedding 16 points to close at 8,506.
Ofthe issues traded, 156 declined, 104 advanced and 30 remained unchanged on theCSE.
The port city bourse traded 17.95 million shares and mutual fund units with turnover value of Tk 314million

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