The stock market experienced yet another bearish session Tuesday with the key index of the Dhaka Stock Exchange (DSE) dipping below the 6,200-mark after two weeks amid prevailing depressed market conditions.
According to market operators, some of the recently rallied stocks continued their correction mode due to a profit-booking tendency among investors who are looking to cash in ahead of the upcoming Eid festival.
With only five trading days left before the holidays, shaky investors began selling shares after the first hour, while others adopted a "wait-and-see" stance in anticipation of the festivities. Despite opening on a marginal gain, the market ultimately succumbed to the overall bearish sentiment.
DSEX, the prime index of the DSE, ultimately settled at 6,196, with a fall of 5.06 points. The DSEX shed nearly 18 points in the past three straight sessions.
The DSES Index, which represents Shariah-based companies, also lost 1.99 points to finish at 1,342. However, the DS30 Index, which consists of well-performing companies, advanced by 1.58 points to 2,198.
"Stocks logged consecutive corrections owing to investors' profit booking sell-off on the recently rallied stocks, causing the core index to fall below the 6,200-mark," according to EBL Securities.
Turnover, the crucial indicator of the market, fell further and amounted to Tk 4.42 billion, which was 5.76 per cent lower than the previous day's turnover of Tk 4.69 billion.
The investors mostly focused on the food sector which accounted for 19 per cent of the day's total turnover, followed by IT 17 per cent and life insurance 9 per cent.
The market index moment was in a narrow range for the last few months as the liquidation opportunities have been squeezed due to the floor price restriction, said a merchant banker, requesting not to be named.
He said the prolonged bearish trend has frustrated investors as they found no immediate solution to the current depressed market situation.
The sale pressure from recently rallied stocks from IT, paper, travel & leisure and jute sectors pushed down the market while some investors took positions in the life insurance sector, said International Leasing Securities.
All the sectors witnessed price correction except life insurance which gained 2 per cent as six life insurers featured in the day's top gainers' list.
The majority of the stocks remained unchanged. Of the 295 issues traded, 78 declined, 34 advanced and 183 remained unchanged.
Aamra Networks was the most-traded stock with shares worth Tk 298 million changing hands, closely followed by Olympic Industries (Tk 293 million), Apex Footwear (Tk 243 million), Eastern Housing (Tk 215 million) and Gemini Sea Foods (Tk 208 million).
Prime Life Insurance was the top gainer, posting a 9.96 per cent gain while Al-Haj Textile was the top loser for the third straight session, losing 9.99 per cent further.
The Chittagong Stock Exchange (CSE) also closed lower with the CSE All Share Price Index - CASPI - losing nearly 19 points to settle at 18,279 and the Selective Categories Index - CSCX -shedding almost 11 points to close at 10,957.
Of the issues traded, 46 declined, 22 advanced and 63 issues remained unchanged on the CSE.
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