Stocks slipped into the red on Sunday, snapping a two-day gaining streak, as the cautious investors opted for booking profit on quick-gaining issues.
The market opened higher and the key index of the prime bourse rose 35 points within the first 10 minutes of trading. But the rest of the session went down gradually, ultimately ending over 19 points lower.
DSEX, the core index of the Dhaka Stock Exchange, went down by 19.26 points or 0.29 per cent to settle at 6,406, after gaining over 64 points in the past two days.
Turnover, the crucial indicator of the market, also dropped and amounted to Tk 8.95 billion, which was 14.4 per cent lower than the previous day's one-month highest turnover of Tk 10.46 billion.
Meanwhile, the Small Capital Platform Index - DSMEX -- kept rising and rose 107 points or 7.26 per cent further to settle at 1,579 on Sunday.
Trading activities on the SME Platform also jumped to Tk 263 million on Sunday and all 13 issues that traded saw their price appreciation.
Market operators said the cautious investors went for booking some profits on quick-gaining stocks, taking the market index and turnover lower.
Investors are not happy with the budgetary measures on the capital market while instability of exchange rates, rising inflation and upsurge in call money rate made them cautious, said a merchant banker.
The new budget has proposed no new incentives, other than the reduction in corporate tax for the listed companies on some conditions, he said.
So many investors remained shaky amid the rising cost of living as inflation is rising fast, he said.
Inflation jumped to 7.42 per cent in May, hitting eight years high since May 2014, according to data released by Bangladesh Bureau of Statistics. Inflation in April was 6.29 per cent, a 17-month high.
Stocks settled down reversing the short-lived upward momentum, as the adverse economic impact of the floods in Bangladesh's northeast region has worsened overall market sentiment, said EBL Securities.
Moreover, the unfavorable economic situation brought by imported inflation and increasing pressure on the foreign exchange market has added to investors' anxieties, said the stockbroker.
"The short-term profit booking tendency of the cautious investors cut down the price of the board index slightly," said International Leasing Securities.
The investors also decreased their participation in the market amid a lack of clear direction regarding the proposed budget, said the stockbroker.
The DSE Shariah Index (DSES) also shed 6.14 points to close at 1,397. However, the DSE 30 Index, comprising blue chips, advanced 2.0 points to finish at 2,329.
Major sectors saw price corrections with general insurance losing the most 1.70 per cent, followed by financial institutions with 0.90 per cent, banking 0.70 per cent, engineering 0.50 per cent, pharma 0.10 per cent and telecom 0.10 per cent.
Losers took a strong lead over the gainers as out of 382 issues traded, 282 declined, 62 advanced and 38 issues remained unchanged on the DSE trading floor.
Beximco topped the turnover list with shares worth Tk 1.12 billion changing hands, followed by Bangladesh Shipping Corporation (Tk 462 million), Shinepukur Ceramics (Tk 450 million), RAK Ceramics (Tk 252 million) and Saif Powertec (Tk 219 million).
Meghna Insurance was the top gainer, posting a 9.84 per cent gain while CAPM IBBL Islamic Mutual Fund was the day's worst loser, losing 2.0 per cent.
The Chittagong Stock Exchange (CSE) also edged lower with the CSE All Share Price Index - CASPI -losing 29.98 points to settle at 18,868 and the Selective Categories Index - CSCX - shedding 17.71 points to close at 11,312.
Of the issues traded, 196 declined, 63 advanced and 34 issues remained unchanged on the CSE.
The port city's bourse traded 7.69 million shares and mutual fund units with turnover value worth nearly Tk 242 million.
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