Stocks drifted lower on Tuesday, after a single-day break, as risk-averse investors opted for booking profit on quick-gaining stocks.
The market opened on upbeat note and the key index of the major bourse rose 25 points within first 30 minutes. But, all the initial gains wiped out as the sessions progressed amid profit booking sell-offs.
Finally, DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down 21.25 points or 0.42 per cent to settle at 4,982.
Two other indices also ended lower. The DS30 index, comprising blue chips, lost 7.47 points to finish at 1,705 and the DSE Shariah Index fell 5.52 points to close at 1,125.
Turnover, a crucial indicator of the market, however, dropped to Tk 8.53 billion, which was 3.0 per cent lower than the previous session's Tk 8.79 billion.
Market operators said stocks faced correction as the shaky investors grabbed profit on large-cap issues, especially from financial institutions, banking, power and cement issues which saw substantial gain in recent price surge.
Fall of large-cap stocks like United Power, ICB, LafargeHolcim, Dutch-Bangla Bank, Brac Bank and Islami Bank played a major role behind the correction of the broad index, said a leading broker.
"The market witnessed a natural correction, as cautious investors intended to realise the profit generated from the previous few weeks", said the merchant banker.
He noted that the correction is also creating an opportunity for some investors to make fresh investments.
A section of investors remained active on the market riding on optimism owing to regulatory moves and resumption of economic activities, he added.
According to International Leasing Securities, the shaky investors preferred to book quick-gain after the news that the securities regulator has revised the margin loan limit announced recently based on the movement of the broad index of DSE which will come into effect from January 1, 2021.
Among the major sectors, financial institutions witnessed the highest correction of 2.10 per cent, followed by banking and power with 1.0 per cent each.
The engineering sector posted the highest gain of 3.9 per cent, followed by general insurance with 2.3 per cent and food 2.0 per cent.
Losers outnumbered the gainers as out of 356 issues traded, 167 closed higher, 140 ended lower while 49 issues remained unchanged on the DSE trading floor.
A total number of 171,651 trades were executed in the day's trading session with a trading volume of 330.63 million shares and mutual fund units.
However, the market-cap on the premier bourse jumped to Tk 3,986 billion on Tuesday, from Tk 3,978 billion in the previous session.
Beximco topped the turnover list with shares worth Tk 344 million changing hands, closely followed by Beximco Pharma, Paramount Textile, Nitol Insurance and Sandhani Life Insurance.
Paramount Textile was the day's best performer, posting a gain of 9.92 per cent while United Airways was the worst loser, losing 7.69 to close its share at Tk 2.40 each.
The Chittagong Stock Exchange also ended lower with its All Shares Price Index (CASPI)-losing 37 points to close at 14,261 while the Selective Categories Index - CSCX shedding 22 points to close at 8,560.
Of the issues traded, 136 declined, 112 advanced and 39 remained unchanged on the CSE.
The port city bourse traded 17.17 million shares and mutual fund units with turnover value of Tk 635 million
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