Stocks' 10-day rally came to an end on Monday as the risk-averse investors preferred to bag profit on quick-gaining shares.
The market opened on a positive note, gaining 26 points within the first 20 minutes of the session. But profit-booking sell-offs in stocks, particularly of non-bank financial institutions, textile, engineering, and banking stocks wiped out the early gains.
The DSEX, the prime index of the Dhaka Stock Exchange (DSE), finally went down more than 22 points to settle at 6,425, after gaining 368 points in the previous 10 trading days.
Market experts said the correction was due to profit taking on stocks that saw significant appreciation in the last few trading days.
Many stocks had gone up by more than 15 to 20 per cent, and many investors decided to take the profit. That, according to experts, was a positive thing because when investors make profit, they get confidence to invest more.
The top index draggers were Beacon Pharma, Renata, IFIC Bank, Fortune Shoes, and Al-Arafah Islami Bank, contributing jointly 15 points to the index fall.
According to EBL Securities, stocks saw a mild setback, snapping its 10-day gaining streak, as sellers took control after substantial gains.
The DSES index, which represents Shariah-based companies, also shed 4 points to 1,394. However, the DS30 index, which consists of blue-chip companies, remained positive, gaining 6 points to 2,166.
The market turnover has been staying above Tk 15 billion for the last seven days as investors were active on both sides of the trading fence.
Turnover, a crucial indicator of the market, stood at Tk 16.93 billion, which was 8.6 per cent down from the day before.
The pharmaceutical sector kept its dominance on the turnover chart, capturing 18 per cent of the day's total turnover, followed by banking and engineering.
Major sectors faced price correction with non-bank financial institutions experiencing the highest loss of 1.7 per cent, followed by textile, engineering, general insurance, cement, and banking sectors.
Travel & leisure saw the highest price appreciation as the newly-listed Best Holdings saw a 10 per cent price hike, followed by ceramic stocks and mutual funds.
Losers took a modest lead over the gainers, as out of 395 issues traded, 254 saw price erosion, 114 closed higher and 27 remained unchanged on the DSE trading floor.
Orion Pharma became the most traded stock with shares worth Tk 617 million changing hands, followed by Bangladesh Shipping Corporation, IFIC Bank, Fortune Shoes, and Fu-Wang Ceramic.
The newly-listed Best Holdings was the day's top gainer, posting a 10 per cent rise while Familytex (BD) the worst loser, shedding 6.38 per cent.
The Chittagong Stock Exchange also ended lower with its All Shares Price Index (CASPI) losing 44 points to close at 18,561 and the Selective Categories Index (CSCX) shedding 26 points to 11,112.
Of the issues traded, 162 declined, 97 advanced, and 24 issues remained unchanged on the CSE.
The port city bourse traded 14.92 million shares and mutual fund units with turnover volume of Tk 403 million.
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