Stocks slipped into the red on Monday, snapping a four-day winning streak, as the risk-averse investors opted for booking profit on quick-gaining issues.
The market opened lower and the downward trend continued until the end of the session amid profit-taking, eventually ending over 16 points lower.
DSEX, the prime index of Dhaka Stock Exchange, went down by 16.32 points or 0.24 per cent to settle at 6,666, after gaining 201 points in the past four consecutive sessions.
The market turnover fell to Tk 5.93 billion on the country's premier bourse, down by 34 per cent over previous day's mark of Tk 8.95 billion.
Market analysts said as many stock prices went up sharply in the past four trading days backed by institutional support, the risk-averse investors favoured profit booking.
"Profit booking tendency of the investors caused the broad index to come down to the red zone," a merchant banker said.
The retail investors went for booking profits, particularly on financial institutions and food sector issues, which triggered a selling pressure in the market, he said.
The general insurance, engineering and banking sectors tried to add some points to the indices, but failed to offset the losses of other sectors, he said.
Prices of 42 insurers out of 53 listed insurance companies rose with eight insurers in the day's top 10 gainers' list.
The insurance sector gained the most on the news that Bangladesh Bank has asked scheduled banks to bring export financing under insurance coverage to minimise default risk, said a leading stockbroker.
In a circular issued on Sunday, the central bank asked banks to safeguard their financing from default risk through a credit guarantee scheme from local insurance companies.
EBL Securities said stocks witnessed a mild correction as investors opted for profit booking after the index had gained for four consecutive days owing to regulatory initiatives.
The stockbroker noted that macroeconomic vulnerabilities remain an issue of concern despite the recent momentum and investors' sentiment remained shaky.
Two other indices also ended lower. The DSE30 Index, comprising blue chips, shed 9.55 points to finish at 2,476 and the DSE Shariah Index (DSES) fell 6.90 points to close at 1,454.
Investor activity was mostly concentrated on the engineering sector, grabbing 15.5 per cent of the day's total turnover, followed by financial institutions with 11.5 per cent and pharmaceuticals 11.3 per cent.
Of the 378 issues traded, 222 declined, 113 advanced and 43 issues remained unchanged on the DSE trading floor.
IPDC Finance topped the turnover list with shares of Tk 339 million changing hands, followed by Beximco (Tk 281 million), Orion Pharma (Tk 223 million), Bangladesh Shipping Corporation (Tk 220 million), and Square Pharma (Tk 152 million).
The insurance sector dominated the gainer's with United Insurance was the day's top gainer list, posting a 7.85 per cent gain, while Bangladesh Monospool Paper Manufacturing Company was the day's worst loser, losing 4.98 per cent.
The Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index - CASPI -losing 46.68 points to settle at 19,599 and the Selective Categories Index - CSCX -falling 28 points to close at 11,761.
Of the issues traded, 147 declined, 99 advanced and 30 issues remained unchanged on the CSE.
The port-city bourse traded 8.09 million shares and mutual fund units with turnover value worth Tk 200.50 million.
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