Stocks ended flat into the red Sunday amid choppy trading with turnover on the prime bourse hitting fresh 7-month low as investors remained cautious ahead of upcoming budget to be announced on June 5.
"With shaky sentiment and apparent lack of direction, investors' confidence dampened further and continued its ongoing downward trend," said a stock broker.
DSEX, the prime index of the Dhaka Stock Exchange (DSE) went down by 5.81 points or 0.13 per cent to close at Tk 4,378.25 points.
The DS30, comprising blue chips lost 2.23 points or 0.14 per cent to close at 1,587.37 points. However, the DSE Shariah Index (DSES) managed to close positive with gaining 0.71 points or 0.07 per cent to close at 973.63 points.
Total turnover at DSE was 29.4 per cent lower than that of the previous session, dipping below Tk 2.0 billion mark and amounting to Tk 1.82 billion. It was the lowest turnover recorded at DSE in the last 7 month since Tk 1.67 billion on October 21, 2013.
"With shaky sentiment and apparent lack of direction, market continued its ongoing trend," commented IDLC Investments, in its regular market analysis.
Consequently, activity declined, making turnover came down to Tk 1.82 billion, lowest in last seven months, said the merchant bank.
"Participants remained passive and 'watchful' throughout the session. These factors trapped overall market compartment, putting investors in a state of indecisiveness," the merchant bank added.
"Market remains volatile in early trade with the DSEX hovering around 4,400 level as investors are cautious about stifled market participation ahead of announcement of budget for the FY 2014-15," said LankaBangla Securities, in its daily market analysis.
Market has factored weaker than expected quarterly earnings and selling pressure of banks to reduce the capital market exposure over last few weeks, said the stock broker.
"Amid increased volatility and fading sell order, investors are looking forward for a new equilibrium in the market," the stock broker added.
"The lack of any dear indication regarding future direction of the stocks market put the investors into passive mood," said International Leasing Securities.
As a result, DSEX witnessed a flat session while the turnover formed new seventh months low, said the Internal Leasing Securities.
"Subdued trading reigned in Dhaka bourse, highlighting the main index failure to punch through its negative momentum," Zenith Investments.
The losers took a modest lead over the losers as out of 291 issues traded, 128 declined, 120 advanced and 43 closed unchanged on the DSE floor.
Most of the sectors posted loss. Among the major sectors telecommunication and pharmaceuticals gained 0.66 per cent and 0.45 per cent respectively.
Food & allied and fuel & power lost 1.34 per cent and 0.76 per cent respectively. The financial sectors also retraced with banks and NBFIs going down by 0.23 per cent and 0.72 per cent respectively.
Activities decreased in the major bourse (DSE) where trade and volume were down by 25.20 per cent and 31.71 per cent respectively. A total number of 0.050 million trades were executed in day's trading session with 45.64 million securities of trading volume.
The total market capitalisation on the DSE stood at Tk 2,843.73 billion against Tk 2,846.98 billion in the previous trading session.
BSRM Steel Mills was the top turnover leader with shares worth Tk 84.40 million changing hands followed by Lafarge Surma Cement, Square Pharma, Mercantile Bank and GP.
