Stocks extended losing streak for the sixth running session Sunday with turnover on the prime bourse hitting one-month-low, as last week's poor quarterly performance continued to weigh on the market sentiment.
The market started with a positive note, but could not sustain as the session progressed. Eventually, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 14.44 points or 0.32 per cent to close at 4,402.50 points.
The other two indices also ended in red. The DS30, comprising blue chips, lost 6.47 points or 0.40 per cent to close at 1,597.92. The DSE Shariah Index (DSES) also dropped 3.07 points or 0.31 per cent to close at 981.77.
The total turnover on DSE dipped below Tk 3.0-billion-mark and amounted to Tk 2.29 billion, registering a decline of 25 per cent over the previous session's value. It was also 5-week-low turnover since Tk 2.24 billion on April 13.
"The market declined in continuation of the previous week, as concern regarding stacking pressure on interest rate due to higher borrowing target in the upcoming budget for FY 2015 and slew of institutional sell promoted investors to book profit," commented LankaBangla Securities.
Banking sector struggled to end on flat green note, as investors remained concerned over increasing default by existing customers, said the stock broker.
"Last week's poor quarterly performance of the companies continued to weigh on the market sentiment. Fear of more poor quarterly performance has pushed up the sell pressure in market," it added.
"The market prolonged its waning tone, while turnover dipped significantly. The investors remained vigilant before taking any fresh position in such a bearish market condition," said International Leasing Securities.
"As Q1 declarations almost passed by, earnings driven momentum has lost its pace. Lack of clarity in several macro issues, including budgetary expectations, and political scenario formed a dubious, 'hard to interpret' outlook for the investors," said IDLC Investments.
Consequently, activities dropped sharply to 20 sessions' low of Tk 2.29 billion, while the index continued its presence in 5 months' low of 4,400 points zone, said the merchant bank.
"After continuous downfall for the past couple of days, the market is likely to re-bounce anytime. Due to lack of liquidity inflow from local investors, the market is deprived of receiving sufficient energy to rise, as it should," said Zenith Investments.
The losers took a modest lead over the gainers, as out of the 287 issues traded, 145 declined, 109 advanced and 33 issues closed unchanged on the DSE floor.
All the major sectors declined, except banks, which closed almost flat with 0.02 per cent gain.
Telecommunications posted the highest loss of 1.02 per cent. NBFIs and food & allied closed 0.81 per cent and 0.73 per cent lower respectively.
Pharmaceuticals and fuel & power also edged down 0.12 per cent and 0.07 per cent respectively.
Activities decreased in the major bourse, where volume and trade were down 24.91 per cent and 21.19 per cent respectively. A total of 0.061 million trades were executed in the day with 58.93 million securities changing hands.
The total market capitalisation on DSE stood at Tk 2,874.15 billion against Tk 2,899.77 billion in the previous trading session.
The newcomer Hwa Well Textiles became the top turnover leader with shares worth Tk 124.97 million changing hands. It was followed by Golden Son, GP, Lafarge Surma Cement and Apex Footwear.
Investors' concentration was focused on textile, pharmaceuticals and engineering sectors, which accounted for 18.02 per cent, 16.08 per cent and 10.59 per cent of the total market turnover respectively.
Ambee Pharma was the day's highest gainer, posting a rise of 16.48 per cent, following its hefty dividend declaration. Golden Son was the day's worst loser, slumping by 19.68 per cent, following its price adjustment after record date.
Chittagong Stock Exchange (CSE) also declined, with its Selective Categories Index - CSCX - losing 38.95 points to stand at 8,469.88.
The losers beat the gainers by 117 to 45, with 34 issues remaining unchanged at the port city bourse that traded 5.51 million shares and mutual fund units, with the turnover value of Tk 205.86 million.
