Stocks extended the losing streak for the second straight session on Wednesday after volatile trading as the market pulse shifted to correction mode due to portfolio realignment.
DSEX, the key index of the Dhaka Stock Exchange, went down by 15.94 points or 0.32 per cent to settle at 4,883.
Market operators said investors opted for booking profit on sector specific stocks while bargain hunters were taking positions on the mutual funds due to the lucrative price level.
Prices fall of Investment Corporation of Bangladesh, ACME Laboratories, Marico Bangladesh, Power Grid Company and Square Pharma contributed the most to fall of index.
The shaky investors went for profit booking sell-off while some investors adopted 'wait-and-see' stance amid ongoing slow market trend, said a leading broker.
According to EBL Securities, investors were selling-off their holdings mainly from insurance stocks as most of the insurance stocks reached at an exorbitant price level.
The stockbroker noted that some investors have been disposing of their current position to join the forthcoming IPO subscriptions which kept the market depressed for the past few sessions.
However, two other indices edged higher. The DS30 index, comprising blue chips, advanced 7.10 points to finish at 1,710 and the DSE Shariah Index gained 2.72 points to close at 1,115.
Turnover, a crucial indicator of the market, stood at Tk 9.75 billion, which was 5.40 per cent higher than the previous day's turnover of Tk 9.25 billion.
Among the major sectors - general insurance witnessed the highest loss of 5.2 per cent, followed by financial institution with 2.4 per cent, engineering 1.4 per cent and textile 1.20 per cent.
On the other hand, mutual fund posted the highest gain of 5.8 per cent, followed by life insurance with 3.3 per cent, telecom 0.60 per cent and banking 0.30 per cent.
All the mutual fund units closed higher. The mutual fund sector also captured around 25 per cent of the day's total turnover. Nine out of top 10 gainers belong to mutual fund sector.
Recently, the stock market regulator has tightened the investment disclosures of mutual funds to increase transparency and ensure good governance.
Mutual funds are a good alternative instrument for investment all over the world. The securities regulator is trying to promote it in the capital market here, which attracted the investors, said a leading broker.
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