The equity benchmark index failed to sustain its positive momentum this week, wiping out all the gains from the previous week, as investors opted to book profits on quick gaining stocks in the run-up to Eid holidays.
Market operators said investors seeking to withdraw cash in preparation for the festivities offloaded their shares, as only four trading days remain before the week-long Eid holidays.
The rush to lock in recent profits left the market in negative territory, with many investors opting to stay on the sidelines rather than hold positions through the holiday period.
As a result, sellers dominated the trading floor, triggering a selling spree in four trading days of the week while the remaining session managed to inch up.
DSEX, the key index of the Dhaka Stock Exchange (DSE), finally settled the week nearly 24 points or 0.46 per cent lower at 5,202. It had gained 22 points the previous week.
The blue-chip DS30 index, a group of 30 prominent companies, also shed 14 points to close at 1,888 while the DSES index, which represents Shariah-based companies, fell 7 points to 1,158.
In an analysis, EBL Securities said the market failed to sustain its positive momentum as investors preferred to remain watchful due to the weakened strength of the market's brief uptrend last week.
However, buying activity has been evident in particular beaten down stocks, while mutual funds also dominated the top gainers' list as investors sought quick gain opportunities in a volatile market, said the stockbroker.
The investors preferred to realize their short-term gains and stay on the sidelines amid lacklustre market momentum ahead of Eid festival, said a leading stockbroker.
The investors were unwilling to make fresh bets amid a lack of confidence as cautious investors shied away from taking positions in equities considering the market's waning momentum, he added.
Price fall of selective stocks such as LafargeHolcim, BRAC Bank, Robi Axiata, National Bank, Islami Bank, Grameenphone and Linde Bangladesh dragged the market index down as they jointly accounted for a 24-point drop in the key index.
LafarheHolcim alone contributed a 4.2-point fall to the key index as the multinational cement maker last week reported a four-year low profit of Tk 3.82 billion due to lower sales amid recent political changeover and challenging macroeconomic environment.
Moreover, Sinha Fashions -- a corporate sponsor of LafargeHolcim -- this week announced its intention to sell more than 2.62 million shares at the prevailing market price within 30 working days.
Turnover, a crucial indicator of the market, stood at Tk 23.84 billion this week, up from Tk 19.55 billion in the week before.
Consequently, the average daily turnover rose to Tk 4.77 billion, up 22 per cent from Tk 3.91 billion the previous week.
Investors were mostly active in the pharmaceuticals sector, which accounted for 13.3 per cent of the week's total turnover, followed by the textile sector (13.2 per cent) and engineering sector (12.6 per cent).
The major sector showed mixed performance this week. The telecommunication, banking and food sectors faced corrections while non-bank financial institutions, engineering, and power sectors posted gains.
Shinepukur Ceramics was the most-traded stock, with shares worth Tk 810 million changing hands, followed by Square Pharma, Orion Pharma, Intraco Refuelling Station, and Alif Industries.
The Chittagong Stock Exchange (CSE) also ended lower, with CSE All Share Price Index (CASPI) shedding 17 points to 14,559 while its Selective Categories Index (CSCX) fell 0.35 point to 8,850.
The port-city bourse traded 14.25 million shares and mutual fund units, with a turnover value of Tk 280 million.
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