Stocks witnessed yet another downward trend Monday, extending the losing spell for the fourth consecutive session, as investors continued their selling binge on banking and telecom issues.
Dealers said the market extended the losses as investors continued to sell banking and telecommunication issues while some remained busy rebalancing their portfolios based on the latest quarterly earnings and year-end dividend declarations.
"Mixed sentiment among the investors regarding capital market outlook and disappointing earnings declaration from the listed companies creating choppy trading and causing the core index to settle in the red," commented EBL Securities, in its regular market analysis.
The market opened on positive note and the key index gained about 20 points within first 40 minutes of trading, but rest of the session fell steadily, finally DSEX fell more than 10 points while CSE All Share Price Index lost 14 points at closing.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 10.74 points or 0.18 per cent to settle at 5,683 points. DSEX shed more than 130 points within four consecutive trading sessions.
"The market closed at negative trajectory as investors booked profit on their investment," commented UCB Capital Management, in an analysis.
The two other indices also ended lower. The DS30 index, comprising blue chips, fell 5.73 points or 0.27 per cent to finish at 2,114. The DSE Shariah Index (DSES) lost 1.75 points or 0.13 per cent to close at 1,318.
Bearish sentiment also reflected on the trading activities as total turnover on the DSE fell below Tk 5.0 billion-mark and the total turnover amounting to Tk 4.90 billion, which was 7.72 per cent lower than the previous day's Tk 5.31 billion.
According to the International Leasing Securities, the market opened on optimistic note, but some investors opted for selling their holding from engineering, bank, telecom stocks, which directed the prime index to close at the red zone.
The stockbroker noted that some opportunist investors were busy rebalancing their portfolio by taking position on small-cap sectors anticipating a better return.
The textile sector dominated the turnover activities, grabbing 18 per cent of the day's total transactions, closely followed by engineering with 17 per cent and pharmaceuticals 12 per cent.
"Investors were very active on textile stocks as latest earnings declarations have lured the investors," according to the International Leasing Securities.
Most of the sectors showed negative performances with the banking sector showing highest correction of 0.55 per cent, followed by engineering 0.54 per cent, pharmaceuticals 0.20 per cent, telecommunication 0.17 per cent and non-bank financial institutions 0.08 per cent.
The fuel & power witnessed the highest gain of 0.43 per cent, followed by food & allied with 0.06 per cent.
The losers took a modest lead over the gainers as out of 340 issues traded, 148 closed lower, 139 ended higher and 53 issues remained unchanged on the DSE trading floor.
Beximco continued to top the turnover chart with shares worth Tk 288 million changing hands, closely followed by BD Thai Aluminium, Square Pharmaceuticals and United Power.
IT Consultants was the day's best performer, posting a gain of 9.77 per cent while Prime Bank was the day's worst loser, losing 12.90 per cent following its price adjustment after record date.
The port city's bourse CSE also closed slightly lower with the CSE All Share Price Index - CASPI - losing 14 points to settle at 17,556 and Selective Categories Index - CSCX -shedding 10 points to finish at 10,614.
The losers beat the gainers as 106 issues closed lower, 105 ended higher and 35 remained unchanged.
The port city bourse traded 8.42 million shares and mutual fund units worth more than Tk 219 million in turnover.
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