Stocks witnessed a mild correction Tuesday, after remaining positive in the four trading sessions, as investors preferred to book quick profits.
The market opened in buoyant mood in the morning, but these early enthusiasms faded away gradually, as sellers took control of the movement of most shares.
The benchmark index of the Dhaka Stock Exchange - DSEX - went down by 7.45 points or 0.15 per cent to settle at 4,784.46, after gaining 67.4 points in the last four sessions.
The two other indices also ended in the red zone. The DS30 index, comprising blue chips, lost 2.44 points or 0.56 per cent to end at 1,829.46. The DSE Shariah Index (DSES) shed 2.10 points or 0.17 per cent to close at 1,175.76.
Turnover, another important indicator of the market, came down to Tk 4.45 billion, which was 6.13 per cent lower than the previous session's Tk 4.73 billion.
The participants mostly focused on power, pharma and engineering - the sectors that accounted for 15.46 per cent, 13.77 per cent and 11.44 per cent of the day's total turnover.
International Leasing Securities, a stockbroker, said, "Investors preferred to book quick gain over the stock price appreciation in the last four sessions, causing the bourse to close in marginally negative note".
Buy pressure was observed in the mutual fund, pharmaceuticals and food and allied sector while bank, engineering and financial institutions sector witnessed notable sell-pressure, said the International Leasing Securities.
"Stocks retreated amid nervousness amid pay hike for government service holders being the most important data," said LankaBangla Securities, a stockbroker, in an analysis.
The stockbroker noted that all eyes are focusing on upshot of such pay hike on the inflation, though economists are cueing that this would not create any inflationary pressure.
Textile sector saw profit booking, investors might have reacted to the comments of vice president of BGMEA that the industry is losing competitive edge due to rise in production cost, said the stockbroker.
IDLC Investments, a merchant bank, said, "The bourse closed slightly lower, reiterating the market's un-preparedness for a gaining streak due to a lack of well-defined market level growth story. As a result, market has taken a cyclical road, increasing for a few session and then decrease".
Zenith Investments, an asset management company, said, "Index started the day with little bit of enthusiasm, but failed to keep the hype as seller control the movement of most shares".
It is apparent that given the upcoming season for June year ending declaration, investors will take cautious steps before acquiring any position on any particular stock, it said.
However, few stocks performed well which were actually dwarfed against majority issues that underwent massive correction, said the Zenith Investments.
The large-cap sectors showed mixed performance. Food and allied and pharmaceuticals gained marginally by 0.48 per cent and 0.32 per cent respectively. Telecommunication 0.07 closed per cent higher, power closed flat.
NBFIs and banks lost 0.74 per cent and 0.56 per cent respectively. Cement experienced a thin correction of 0.12 per cent.
The port city bourse Chittagong Stock Exchange (CSE) also closed in the red with its Selective Categories Index - CSCX - lost 39.60 points to end at 8,901.79.
Losers beat gainers, 155 to 82, with 21 issues remained unchanged on the port city bourse that traded 10.16 million shares and mutual fund units with a value of Tk 324.49 million.
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