Stocks extended the losing streak for the fifth consecutive session on Wednesday, as shaky investors continued sell-offs on sector-wise issues following lower-than-expected corporate declarations.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), dropped 29.44 points or 0.60 per cent to settle at 4,838.
The index wiped out more than 78 points in the past five sessions.
Two other sub-indices also ended lower. The DS30 index, comprising blue chips, lost 9.91 points to finish at 1,665 and the DSE Shariah Index shed 8.77 points to close at 1,094.
Market analysts said investors were gradually ramping up their sell-offs as eight companies reported lower-than-expected earnings and declared no dividend, while some investors were busy rebalancing their portfolios.
Eight listed companies -- Sea Pearl Beach Resort & Spa, Generation Next Fashions, Olympic Accessories, Jute Spinners, Renwick Jajneswar, Zeal Bangla Sugar Mills, Zahintex Industries and Savar Refactories -- declared 'no' dividend for the year ended on June 30, 2020, according to disclosures on Wednesday.
The year-end dividend and quarter-end earnings declarations have failed to meet the investors' expectations which prompted them to dump shares, commented the International Leasing Securities.
However, mutual fund sector attracted the investors most as the securities regulator's chairman said on Tuesday that investment in mutual funds is more profitable than the fixed deposits in banks and the stock market regulator is trying to enhance transparency and accountability in the mutual fund sector, said the stockbroker.
Turnover, a crucial indicator of the market, however, crossed Tk 11 billion mark to reach Tk 11.12 billion, up 11 per cent from the previous day's turnover of Tk 10 billion.
It was the highest single-day turnover in six weeks since September 16, when the turnover was Tk 11.47 billion.
The EBL Securities said the investors' participation displayed a portfolio restructuring strategy to escape further losses midst below-par corporate earnings declaration.
However, insurance sector seized all the shine since investors are rushing to get a hold of some selective scrips from the most hyped insurance sector due to a positive change in financial statements of these companies brought by the lower commissioning policy, said the stockbroker.
The general insurance sector continued to attract the investors which have been reflected in the daily turnover board over the last couple of months.
Among the major sectors, the engineering sector witnessed the highest correction, losing 3.20 per cent, followed by financial institutions (2.70 per cent), pharma (1.20 per cent), power (0.90 per cent), telecom (0.80 per cent) and food (0.40 per cent).
Mutual fund sector posted the highest gain of 7.70 per cent as all the mutual finds closed green, followed by general insurance (2.90 per cent) and banking sector (0.80 per cent).
Losers took a modest lead over the gainers, as out of 356 issues traded, 187 ended lower, 110 closed higher while 59 issues remained unchanged on the DSE trading floor.
A total number of 207,968 trades were executed in the day's trading session with a trading volume of 449.22 million shares and mutual fund units.
The market capitalisation of DSE stood at Tk 3,889 billion on Wednesday, down from Tk 3,914 billion the previous day.
The general insurance sector continued to dominate the turnover chart as nine out of top 10 turnover companies came from the insurance sector, capturing 45 per cent of the day's total turnover.
Sandhani Life Insurance topped the turnover list with shares worth Tk 287 million changing hands, closely followed by Rupali Insurance, Eastland Insurance, Continental Insurance and Beximco Pharma.
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