Stocks slipped back into the red on Tuesday, snapping a two-day winning streak, as investors opted for quick-profit on large-cap shares.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), lost 41.51 points or 0.83 per cent to settle at 4958, after adding more than 144 points in the past two sessions.
Market analysts said investors preferred booking profits on large-cap shares which saw their price surge in the past two sessions, taking the market in the negative territory.
Large-cap shares like Grameenphone, United Power, BATBC, Renata and Square Pharma fell after recent price surge, contributing 28 points fall of DSEX, said a leading broker.
Before two sessions gain, the market witnessed sharp decline, with DSE key index tumbling to 33-month low at 4,855 points on September 19.
The Bangladesh Bank's declaration to ease advance-deposit ratio (ADR) and finance minister's assurance failed to boost investors' confidence to the market.
Later, the central bank has announced a fresh policy for providing temporary liquidity support to the scheduled banks for boosting their investment in the country's ailing capital market.
Following the central bank's latest news, the market soared on Sunday and Monday and DSE key index added 144 points. But failed to sustain two days upward trend and settled below the "psychological threshold" of 5,000-mark.
"Many investors remained worried about the recent volatility of the market," commented EBL Securities, in its regular market analysis.
Two other indices also closed lower. The DS30 index, comprising blue chips, fell 15.86 points to finish at 1,774 and the DSE Shariah Index shed 12.85 points to close at 1,145.
Turnover, a crucial indicator of the market, also fell to Tk 4.05 billion, which was nearly 22 per cent lower than the previous day's Tk 5.17 billion.
Investors displayed mixed reaction towards Bangladesh Bank's stance in providing liquidity support for increasing banks' investment in capital market, said UCB Capital Management.
Dearth of liquidity is still keeping the market in the bear territory for an extended period, the stockbroker said.
According to International Leasing Securities, the stocks returned to the red as investors went for short-term profit booking sell offs on their investment.
The stockbroker noted that the several issues from mutual fund and general insurance sectors enjoyed buoyancy, but selling of shares from large-cap sectors mostly telecom, power, pharma and banking sectors contributed to market fall.
The port city's bourse, the Chittagong Stock Exchange, also backed to the red with its All Shares Price Index (CAPSI) -- CASPI-losing 138 points to close at 15,079 and the Selective Categories Index - CSCX -shedding 83 points to finish at 9,158.
Here too, losers beat the gainers as 153 issues closed lower, 79 ended lower and 18 remained unchanged on the CSE.
The port city bourse traded 11.67 million shares and mutual fund units worth nearly Tk 266 million in turnover.
© 2024 - All Rights with The Financial Express
