Stocks slipped into the red on Wednesday, after a single-day break, as late hours selling pressure wiped out the initial gains amid lack of clear market direction.
The market jumped at opening and the core index soared 36 points within the first 15 minutes of trading. But the early gains were eroded due to sell-offs on banking, financial institutions and pharma sector stocks.
Finally, DSEX, the key index of the Dhaka Stock Exchange (DSE), went down by 21.25 points or 0.31 per cent to settle at 6,750, after gaining over 79 points in the previous session.
Market operators said stocks ended lower as investors opted for booking short-term profit amid no clear direction of the market.
"The market started on a high note, but morning optimism failed to sustain as risk-averse investors engaged in a selling frenzy," said a merchant banker.
A section of investors remained worried about the possible adverse impact of the Russia-Ukraine war on the country's economy while some followed cautious stance ahead of the holy Ramadan, he said.
He noted that some investors also favoured staying on the sidelines as concerns loomed due to rising inflation and local currency depreciation against the US dollar.
The exchange rate of Bangladesh Taka (BDT) fell significantly against the US dollar on Tuesday due to higher demand for the greenback for settling import-payment obligations, according to a media report.
The BDT lost its value by 20 poisa - the steepest single-day fall in more than a couple of months, according to the market operators.
"The demand for the US dollar has increased recently due to higher price of essentials, including fuel oils, in the global market following the Russia-Ukraine war".
Two other indices also edged lower. The DS30 index, comprising blue chips, shed 1.61 points to finish at 2,469 and the DSE Shariah Index fell 4.14 points to close at 1,456.
Turnover, a crucial indicator of the market, stood at Tk 8.63 billion, which was 9.82 per cent lower than the previous day's tally of Tk 9.57 billion.
Major sectors faced corrections with financial institutions losing the most of 0.90 per cent, followed by engineering with 0.40 per cent, banking 0.40 per cent, power 0.30 per cent, pharma 0.30 per cent, and food 0.10 per cent.
Losers took a strong lead over the gainers as out of 378 issues traded, 263 ended lower, 76 higher while 39 issues remained unchanged on the DSE trading floor.
A total number of 154,544 trades were executed in the day's trading session with a trading volume of 196.78 million shares and mutual fund units.
The market capitalisation of DSE dropped to Tk 5,385 billion on Wednesday, down from Tk 5,399 billion in the previous session.
Beximco continued to dominate the turnover chart with shares worth Tk 1.25 billion changing hands, followed by BDCOM Online (Tk 342 million), Sonali Paper & Board Mills (Tk 329 million), Fortune Shoes (Tk 193 million) and Delta Life Insurance Tk 190 million).
Low-cap companies continued to dominate the gainers' list with Oimex Electrodes was the day's best performer, posting a gain of 9.55 per cent gain, followed by Sonali Papers & Board Mills (7.07 per cent), Delta Life Insurance (6.54 per cent), Bashundhara Papers Mills (5.85 per cent) and Prime Bank 1st ICB AMCL Mutual Fund (5.40 per cent).
Delta Brac Housing Finance was the worst loser, losing 10.09 per cent following its price adjustment after record date.
The Chittagong Stock Exchange also ended marginally lower with its All Shares Price Index (CASPI)-losing 11.55 points to close at 19,802 while the Selective Categories Index - CSCX shed 6.79 points to close at 11,880.
Of the issues traded, 177 advanced, 93 declined and 38 remained unchanged on the CSE. The port-city bourse traded 28.45 million shares and mutual fund units with turnover value of Tk 568 million.
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