Stocks slipped into the red on Wednesday, after a single-day break, amid bearish sentiment of investors due to global fuel price hike and possible impact on the country's economy.
The market opened on a positive note and the key index rose about 28 points within the first hour of trading. But it eventually ended over 6.0 points lower.
DSEX, the key index of the Dhaka Stock Exchange (DSE) settled at 6,366, after gaining over 25 points in the previous day.
Turnover, the crucial indicator of the market, also dropped to Tk 7.46 billion, which was 22 per cent lower than the previous day's tally of Tk 9.61 billion.
Market operators said the ongoing bearish sentiment triggered a sell-off across the bourse as power cuts have become frequent across the country over the last few days.
"If the situation is prolonged, it will impact the company's production badly," said a merchant banker, seeking anonymity.
He noted that the war in Ukraine and its impact on energy supplies are casting a shadow over the global economic outlook.
The International Energy Agency said in a report Tuesday that high prices for natural gas and supply fears due to the war in Ukraine will crimp economic activity, slowing the growth in demand in coming years.
Besides, the Bangladesh Bank declared a relatively contractionary monetary policy and investors have continued their cautious stance amidst ongoing macroeconomic headwinds, he said.
According to EBL Securities, stocks closed in the red trajectory due to an intense bearish sentiment which triggered a sell-off across the bourse since investors were unnerved over worsening macroeconomic cues of the country.
"Volatility prevails on the trading floor as investors' worries loom over the rise of Covid-19 infections and the nationwide power outage caused by a gas shortage in power plants in the country," said the stockbroker.
The investors were active in purchasing some stocks at lucrative prices in the morning, but could not sustain due to the sale pressure of some of the investors, said International Leasing Securities.
"The investors followed a cautious stance ahead of Eid festival as the commodity prices are soaring," said the stockbroker.
Two other indices also dropped marginally. The DS30 Index, which consists of the blue-chip companies, fell 2.05 points to close at 2,299 and the DSES Index, which represents Shariah-based companies, saw a fractional loss of 0.05 point to finish at 1,389.
Major sectors showed mixed performances. Cement sector posted the highest loss of 1.60 per cent, followed by banking with 0.40 per cent, general insurance 0.40 per cent, food 0.10 per cent and telecom 0.10 per cent.
On the other hand, IT, engineering, miscellaneous and financial institutions sectors gained 1.40 per cent, 0.20 per cent, 0.20 per cent and 0.10 per cent respectively.
Losers took a strong lead over the gainers as out of 382 issues traded, 210 declined, 118 advanced and 54 remained unchanged on the DSE trading floor.
The Chittagong Stock Exchange (CSE) also edged lower with the CSE All Share Price Index - CASPI -losing 20 points to settle at 18,749 and the Selective Categories Index - CSCX -shedding 12 points to close at 11,237.
Of the issues traded, 172 declined, 87 advanced and 43 issues remained unchanged on the CSE.
The port city's bourse traded 8.28 million shares and mutual fund units with turnover value worth nearly Tk 266 million.
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