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Dhaka stocks extends its downward momentum on Wednesday as profit booking and short-term trading activities continued across the market, owing to an uncertain market trend and investors rocky confidence.
On Wednesday, the country’s premier bourse, the Dhaka Stock Exchange’s key index, the DSEX, went down by 18.58 points or 0.30 per cent closing at 6,213.37 points.
DS30, the blue-chip index fell by 0.11 per cent, and the Shariah-based index DSES fell by 0.11 per cent, closing at 2,215.18, and 1,353.72 points respectively.
Turnover increased by 7.72 per cent to Tk 607 crore. The life insurance sector dominated the turnover chart, covering 20.46 per cent of the total turnover. Market insiders said that the Dhaka stocks closed in red due to dominant profit-booking sell pressure across the bourse as cautious investors opted to secure their short-term gains from the market due to economic uncertainty.
The market was down throughout the session, with the majority of scrips experiencing corrections due to sell dominance prevailing across the bourse as the market is yet to experience a major trigger to return to consistent positive momentum.
EBL Securities said in its daily market review on Wednesday, investors were active on both sides of the trading fence, but sellers went to the dominant side during the last hour of the session, causing the majority of the stocks to witness corrections. Considering the probable adverse impact of the prolonged inflationary pressures in the economy, as well as other macroeconomic challenges, investors prefer to chase selective issues with short-term gain potential over taking long-term positions in equities, as per the report.
Investors prefer short-term profit making opportunities rather than long-term positions in equities, dismayed by the poor financial performance of the majority of listed companies in recent quarters, market insiders said.
On the sectoral front, life insurance (21.8per cent) issues exerted the highest turnover, followed by IT (17.0per cent) and pharma (13.8per cent) stocks. Almost all sectors displayed dismal returns, out of which travel (-3.9per cent), paper (-2.6per cent) and IT (-1.8per cent) exerted the most corrections, while only food (0.1per cent) exhibited marginal returns on the bourse on Wednesday.
At the prime bourse DSE, 21 issues advanced, 110 declined, and 260 remained unchanged.
Olympic Industries made the highest gains with an increase of 6.3 per cent. Metro Spinning was the biggest loser, falling by 9.9 per cent. The port city exchange, CSE, also settled on red. The selected indices CSCX and all-share price index CASPI declined by 23.9 and 40.7 points respectively.
