Stocks witness correction

Stocks witnessed mild correction Monday for the third sessions in a row with turnover falling further as investors remained cautious ahead of Eid festival.
The market opened with a negative note and the downturn sustained throughout the session amid marginal volatility. DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 9.28 points or 0.20 per cent to finish at 4,526.72.
The DSE Shariah Index (DSES) shed 0.54 points or 0.04 per cent to end at 1,110.56. However, the DS30 index, comprising blue chips, moved up by 2.86 points or 0.20 per cent to settle at 1,764.49.
Turnover stood at Tk 4.23 billion, a 9.62 per cent lower than the previous day's Tk 4.68 billion.
The investors' attention was mostly focused on pharma, engineering and power - the sectors that accounted for 22 per cent, 17 per cent and 11 per cent of the day's total turnover.  
"Investors' selling of shares for booking gain and for making some cash in hand to meet expenses on the eve of holy Eid festival caused the prime bourse to end in red for three consecutive sessions," said International Leasing Securities, a stockbroker, in an analysis.
Anticipation of slow market movement before the market closure ahead of Eid also reduced the participation from the sideline, said the stockbroker.
"The price surge in stocks from cement and pharmaceuticals sector drove away due to the price correction in issues from fuel and power, bank and financial institutions," said the stockbroker.
IDLC Investments, a merchant bank, said, "The bourse observed a mildly negative session, while investors ponder on stories for coming days. With the passing of the month June, annual declarations of many companies have fallen due".
"As a full quarter of the financial year was lost to political violence, investors needed to be cautious to determine what to expect from the ensuing declarations," said the merchant bank.
Meanwhile, stocks specific play went on in micro level, yielding sizable gain to the relevant parties, said the merchant bank.
"Stocks were mostly traded mixed, following two days of losing streaks, where traders were reluctant to take fresh positions in broader market," said LankaBangla Securities, a stockbroker, in its daily market analysis.
However few blue-chip stocks were actively traded as current market price of those enticed buying interest among investors. Consumer goods stocks were on the top turnover list while multinational stocks were in the buying radar, said the stockbroker.
The large-cap sectors showed mixed performance. Cement was the highest gainer with 0.90 per cent appreciation. Pharmaceuticals also advanced by 0.45 per cent.
Power posted the highest loss of 1.01 per cent. In the financial sector, NBFIs lost 0.81 per cent and banks went down by 0.44 per cent. Food and allied retraced by 0.43 per cent in the session. Telecommunication remained flat with no change.
The losers took a modest lead over the gainers as out of 321 issues traded, 166 declined, 116 advanced and 39 remained unchanged on the DSE trading floor.
Activities decreased in the major bourse where trade and volume were down by 12.79 per cent and 8.67 per cent respectively. A total number of 0.103 million trades were executed with trading volume of 113.19 million securities.
The market capitalisation on DSE stood at Tk 3,215.63 billion against Tk 3,219.79 billion in the previous trading session.
United Airways was the day's top turnover leader with shares worth Tk 278 million changing hands followed by ACI, Olympic Accessories, AFC Agro Biotech and Square Pharma.
Sonali Aansh was the day's best performer, posting a rise of 9.97 per cent while Pragati Life Insurance was the day's worst loser, plunging by 9.37 per cent.
The port city bourse Chittagong Stock Exchange (CSE) also closed in the red with its Selective Categories Index - CSCX - lost 11 points to close at 8,488.
Losers beat gainers 117 to 87, with 40 issues remaining unchanged at the port city bourse that traded 12 million shares and mutual fund units with turnover of Tk 350 million.
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