Stocks nosedived on Tuesday, with the key index of the Dhaka Stock Exchange (DSE), tumbling below 5,700-mark after two weeks, as investors went on sell-offs on large-cap issues.
DSEX, the prime index of the DSE, went down by 94.55 points or 1.63 per cent to settle at 5,695. DSEX lost roughly 140 points in the past three straight sessions.
Two other indices also ended lower. The DSE 30 Index comprising blue chips plunged 39 points to finish at 2,162 and the DSE Shariah Index (DSES) lost 17.43 points to close at 1,279.
Debutant Energypac Power Generation faced a major correction of 9.93 per cent, making it the day's top loser, after soaring 198.7 per cent or Tk 61.60 each in the past five days from its offer price of Tk 31 each since debut on January 19.
Market operators said price fall of large-cap sector stocks and lower than expected earnings and dividend declarations of some listed companies during the trading hour contributed to the index fall.
Renwick Jajneswar incurred losses of Tk 8.30 per share for October-December 2020 as against profit of Tk 0.99 for the same period a year ago.
EPS of National Tubes, CVO Petrochemicals and Apex Footwear also declined in October-December, 2020 quarter compared to the same quarter of the previous year.
Singer Bangladesh's consolidated EPS fell 24.15 per cent year-on-year to Tk 7.85 for the year ended on December 31, 2020.
Many investors freed some funds to participate in the initial public offerings, said a merchant banker.
IPO subscription of Lub-rref (Bangladesh) opened Tuesday while subscription of three more companies - NRBC Bank, Desh General Insurance and Index Agro Industries -will open next month.
According to International Leasing Securities, profit booking on large-cap stocks that witnessed price surge in the last few weeks contributed to the fall of indices.
The soon to be implemented interest rate cap on the margin loans may induce investors to go for selling offs as many of the brokerages are reluctant to provide margin loans as such low rate, said the stockbroker.
Many merchant banks insisted on adjusting margin loans ratio as they are unable to provide loans at such a low rate due to their high cost of funds while the highest spread allowed at only 3.0 per cent, said EBL Securities.
Top negative index contributors of the market were Robi Axiata, Beximco, ICB, Beximco Pharma and Grameenphone, according to data from amarstock.com, a stock market data analyst.
Turnover, a crucial indicator of the market, also fell to Tk 11.25 billion on the country's premier bourse, slumping by 29 per cent over the previous day's mark of Tk 15.85 billion.
All the major sectors saw price correction, except food and allied which gained 3.10 per cent riding on sector heavyweight British American Tobacco that was the day's top gainer, witnessing 4.71 per cent return.
Financial institutions saw the highest correction, losing 4.10 per cent, followed by telecom with 2.90 per cent, power 1.50 per cent, engineering 1.30 per cent and banking 1.0 per cent.
Losers took a strong lead over the gainers, as out of 357 issues traded, 255 declined, 27 advanced and 75 remained unchanged on the DSE trading floor.
Beximco topped the turnover chart with 16.85 million shares worth Tk 1.43 billion changing hands, followed by Energypac Power, Robi, LankaBangla Finance and Beximco Pharma.
The Chittagong Stock Exchange (CSE) also kept losing with the CSE All Share Price Index - CASPI -plunging by 299 points to settle at 16,578 and the Selective Categories Index - CSCX shedding 179 points to close at 10,008.
Of the issues traded, 179 declined, 22 advanced and 50 remained unchanged on the CSE. The port city's bourse traded 14.61 million shares and mutual fund units with turnover value of Tk 665 million.
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