The stock market ended lower for the fourth straight session Sunday, after Eid vacation, as prolonged bearish sentiment kept investors shaky to pour funds in stocks amid growing macroeconomic worries.
The market index rose about 19 points soon after the trading started, but the rest of the session went down steadily, ultimately ending more than 20 points lower.
DSEX, the core index of the Dhaka Stock Exchange (DSE), went down by 20.21 points to settle at 6,304. The benchmark index eroded about 63 points in the past four consecutive sessions.
Turnover, the crucial indicator of the market, remained low and amounted to Tk 5.93 billion, which was 2.07 per cent higher than the previous day's seven-week lowest turnover of Tk 5.81 billion.
Market operators said the market outlook remains gloomy as investors are concerned on several macroeconomic issues such as shrinking foreign currency reserves, depreciating local currency and high inflationary pressure.
"The ongoing bearish sentiment coupled with inflationary pressure created a confidence crisis among the investors," said a merchant banker, seeking anonymity.
Besides, the looming global economic uncertainties and commodity market volatility weakened investors' sentiment, he said.
The prolonged bearish sentiment kept investors engaged in continuous sell-offs in absence of any major trigger for the market to bounce back, said EBL Securities, in its regular market analysis.
"Investors were cautious owing to the market's persistent pessimism, which was exacerbated by the news that foreign currency reserves dropped below $40 billion, hitting a two-year low," said the stockbroker.
International Leasing Securities said the risk-averse investors continued their sell-off on sector-specific issues amid growing macroeconomic worries.
"Taka is depreciating against the dollar day by day where the reserve at the central bank is declining simultaneously, which created a negative sentiment among the investors," said the stockbroker.
Two other indices also closed in the red. The DS30 Index lost 6.29 points to close at 2,267 and the DSES Index shed 1.11 points to finish at 1,376.
Meanwhile, junk stocks kept gaining in the bearish market and dominated the day's top gainers' chart as six out of top 10 gainers came from 'Z' category. Trading of some of them were halted during the trading hours.
Among the junk stocks, Mithun Knitting & Dyeing was the top gainer, surging by 10 per cent, followed by ICB Islamic Bank (10 per cent), Meghna Pet Industries (9.92 per cent), Meghna Condensed Milk (9.91 per cent), BIFC (8.06 per cent), and Tallu Spinning Mills (7.92 per cent).
All major sectors ended lower except pharma which gained 0.20 per cent.
Financial institutions faced the highest correction, losing 0.70 per cent, followed by textile with 0.50 per cent, power with 0.40 per cent, banking 0.30 per cent, telecom 0.20 per cent.
Losers took a strong lead over the gainers as out of 382 issues traded, 236 declined, 99 advanced and 47 issues remained unchanged on the DSE trading floor.
Beximco was the most-traded stock with shares worth Tk 397 million changing hands, followed by Intraco Refueling Station (290 million), Titas Gas (Tk 162 million), Delta Life Insurance (Tk 139 million) and Fu-Wang Food (Tk 117 million).
The Chittagong Stock Exchange (CSE) also ended lower with the CSE All Share Price Index - CASPI -losing nearly 72 points to settle at 18,523 and the Selective Categories Index - CSCX -shedding almost 44 points to close at 11,099.
Of the issues traded, 183 declined, 67 advanced and 40 issues remained unchanged on the CSE.
The port city's bourse traded 6.75 million shares and mutual fund units with turnover value worth Tk 196 million.
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