Stocks extended their losing streak on Monday, with the key index of the Dhaka Stock Exchange (DSEX) dipping to more than two months low as shaky investors were on selling binge.
Market insiders witnessed a slow trend as investors were reluctant to take new positions amid lower-than-expected earnings declarations and dividends by many companies.
DSEX, the benchmark index of the DSE, went down 26.68 points or 0.42 per cent to settle at 6,307.34, the lowest in two months since August 24. The DSEX was 6,280 on August 24.
The DSEX shed more than 70 points in the past two trading days.
Two other indices also ended lower. The DS30 index, comprising blue chips, dropped 18.55 points to finish at 2,226 and the DSE Shariah Index (DSES) fell 12.35 points to close at 1,377.
Turnover, another important indicator of the market, stood at Tk 7.69 billion on the country's premier bourse, which was 7.0 per cent lower than the previous day's tally of Tk 8.26 billion.
Most of the traded issues remained unchanged due to the 'floor price' restriction. Of the 347 issues traded, 86 declined, 29 advanced and 232 others remained unchanged on the DSE trading floor.
The year-end dividend and quarter-end earnings declarations might have failed to meet the investors' expectations which prompted them to sell shares, said a stockbroker.
The investors' willingness for long term investment in the market weakened due to unresolved regulatory issues regarding buying equities before cheque encashment, said EBL Securities.
"The market had witnessed a setback as investors' selling dominance took control over the market, while a bleak economic outlook and gloomy earnings declaration made investors concerned on the bourse," said a stockbroker.
Persistent market volatility kept the investors' confidence shaky while participation concentrated on a handful of selective stocks which exacerbate the ongoing pessimism over the market, said the stockbroker.
Bashundhara Paper Mills topped the turnover chart with shares worth Tk 526 million changing hands, followed by Intraco Refueling Station (Tk 408 million), Orion Pharma (Tk 376 million), Sea Pearls Beach (Tk 333 million), and KDS Accessories (Tk 285 million).
Chartered Life Insurance, which made trading debut on Sunday, was the top gainer, posting a 10 per cent gain while Navana Pharma was the worst loser, losing 9.34 per cent after climbing by 78 per cent in the previous day.
The Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index - CASPI -losing by 70 points to settle at 18,622 and the Selective Categories Index - CSCX - shedding 43 points to close at 11,160.
Of the issues traded, 67 declined, 29 advanced and 128 remained unchanged on the CSE trading floor.
The port city's bourse traded 11.75 million shares and mutual fund units with turnover value of nearly Tk 237 million.
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