Stocks slipped into the red on Wednesday, snapping a two-day gaining streak, amid poor earnings declarations by a number of companies.
Market operators said earnings and dividend declarations of some companies during the trading hours failed to meet investors' expectation, prompting them to sell shares.
"Lower than expected dividend declaration of Khulna Power Company and poor quarterly earnings of banks and financial institutions took a toll on stock prices," said a leading broker.
Khulna Power recommended 30 per cent cash and 10 per cent stock dividend for the year ended on June 30, 2018. In 2017, the company disbursed 55 per cent cash dividend.
Following the lower dividend declaration, Khulna Power's share price plunged 6.30 per cent to close at Tk 114.50 on Wednesday.
Savar Refractories, Golden Son and Beach Hatchery -- have recommended 'no' dividend for the year ended on June 30, 2018.
The earnings of most of the listed banks also plummeted in January-September period of this year compared to that of the same period last year.
A section of investors also adopted 'wait-and-see" approach on the back of proposed dialogue between the ruling Awami League and Jatiya Oikyafront leaders scheduled to be held today (Thursday), International Leasing Securities said.
The market started with mixed trend and crossing the 5,300-mark within one hour of trading, but rest of the session went through correction.
The port city bourse, the Chittagong Stock Exchange (CSE), also edged lower with its CSE All Share Price Index-CASPI-losing 36 points to settle at 16,191 and the Selective Categories Index - CSCX -shedding 23 points to finish at 9,816.
The losers beat gainers as 133 issues closed lower, 82 ended lower, with 24 issues remaining unchanged on the CSE.
The port city bourse traded 8.71 million shares and mutual fund units worth Tk 204 million in turnover.
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