Stocks extended their losing streak for the fourth straight session on Tuesday, as cautious investors continued to sell off in this earnings season.
According to market analysts, stocks witnessed a downturn as some of the companies' quarterly earnings failed to meet investors' expectations.
A good number of listed companies published their quarterly financial statements for the April-June quarter in the last few days.
As interest rates started to rise ahead of the national election, some investors preferred booking profits from shares that were trading above the floor price, said a stockbroker.
Due to the absence of a clear market direction, investors' confidence remained shaky, leading them to hold more cash positions rather than take long-term stands in equities, he added.
On Tuesday, the market opened higher and the positive trend sustained during the first half of the session. But the selling pressure in the last hours wiped out the initial gains.
The benchmark index of the Dhaka Stock Exchange, DSEX, finally went down by 6.86 points to settle at 6,331, having lost more than 35 points in the past four trading days.
Heidelberg Cement, Midland Bank, Olympic Industries, Singer Bangladesh and Rupali Life Insurance jointly accounted for a 6-point fall of the DSEX, according to amarstock.com, a market data analyst.
Experts have attributed investors' preference for selective stocks, while strong fundamental shares are stuck at floor prices, as a major barrier to bringing stability to the market.
Md Sajedul Islam, senior vice president of DSE Brokers Association of Bangladesh, said that some companies' quarterly earnings might have failed to meet investors' expectations, leading them to book profits.
Lower-than-expected quarterly earnings, coupled with the fact that some multinational firms like Grameenphone, LafargeHolcim and BAT Bangladesh did not declare any interim dividend this year, along with the heating up of the political atmosphere, might be the factors behind the market fall, according to Mr Islam.
Both the ruling Awami League and the opposition BNP have announced concurrent political programmes on July 27.
The DS30 Index, consisting of blue-chip companies, shed 4.35 points to 2,162 and the DSES index, representing Shariah-based companies, fell 1.35 points to 1,373.
Turnover, the crucial market indicator, however, rose 4 per cent to Tk 6.61 billion, from Tk 6.33 billion on the previous day.
Sea Pearl Beach Resorts was the most-traded stock with shares worth Tk 302 million changing hands, closely followed by Fu-Wang Food, RD Food, Crystal Insurance and Gemini Sea Food.
Low-cap stocks dominated the gainer's list with Legacy Footwear being the top gainer, soaring 9.96 per cent, while Rupali Life Insurance was the worst loser, losing 9.91 per cent.
Most of the traded issues remained stuck at the floor price. Of the 358 issues traded, 121 declined, 49 advanced and 188 remained unchanged on the DSE.
The Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index - CASPI - losing 12 points to settle at 18,710, while its Selective Categories Index (CSCX) shed 7 points to close at 11,184.
The port city's bourse traded 3.06 million shares and mutual fund units with a turnover value worth Tk 103 million.
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