DSEX, the key index of the Dhaka Stock Exchange (DSE), extended its fall on Tuesday amid lower market participation, resulting from the enduring pessimism pervading the trading floor owing to the dampened confidence of investors amidst an uncertain market outlook.
Meanwhile, trading activities remained stagnant while market turnover fell to a nearly three-month low, decreasing by 21.6 per cent to Tk 367 crore from the previous session’s Tk 470 crore.
DSEX lost 22.98 points and closed at 5,738.40 at the end of trading. The blue-chip index, DS30, and the Shariah-based index, DSES, closed at 2,001.72 and 1,245.34 points, respectively. Large-cap sectors posted a mixed performance on Tuesday as well.
Market insiders said that the index fell as panic-driven sell pressure continued to dominate the market owing to the enduring pessimism pervading the trading floor.
In its daily market review, EBL Securities said that the market extended its free fall and experienced volatility throughout the session as investors shied away from taking positions in equities and opted to stay on the sidelines to observe the market momentum amidst the prolonged subdued market sentiment.
However, it said, bargain hunters opted to take position in the beaten-down scrips in the final hour of the session.
Out of the 396 issues traded, 77 advanced, 266 declined and 53 remained unchanged at the Dhaka bourse.
ABB1STMF was the day's top gainer, posting a 6.98 per cent gain, while PREMIERLEA was the worst loser, losing 6.12 per cent.
Market insiders said that the recent market failed to hold onto the revival spirit as investors turned back to their selling mode after a two-day break owing to the wavering confidence across the trading floor.
The market extended its uptrend in the first hour of the session; however, subsequent choppy trading caused the core index to tumble and close in the red territory again after a short-lived uptrend in the previous two sessions.
The downbeat capital market extended its free fall as panic-driven sell pressure continued to dominate the market owing to the enduring pessimism pervading the trading floor amid subdued market sentiment and rising tensions over the market outlook, said market insiders.
The market pulse shifted to correction mode again after a recent short-lived period of optimism due to waning investor confidence stemming from the prolonged bearish vibe in the market. Cautious investors prefer to stay on the sidelines until the market experiences a major trigger to regain positive momentum.
The persistent volatility in the market has prompted cautious investors to partially liquidate their holdings and remain on the sidelines until there is any clear indication regarding market momentum, insiders said.
According to the daily market update by BRAC EPL Stock Brokerage, engineering booked the highest gain of 1.30 per cent on Tuesday. Block trades contributed 8.1 per cent of the overall market turnover.
Central Pharmaceuticals Limited was the most traded share with a turnover of Tk 22 crore.
The Chittagong Stock Exchange (CSE) also settled on red terrain on Tuesday, with the CSE All Share Price Index, CASPI, losing 74.42 points to settle at 16437.24 and the Selective Categories Index, CSCX, shedding 42.96 points to close at 9883.67.
Of the issues traded, 128 declined, 50 advanced and 27 issues remained unchanged on the CSE.
The port city bourse traded 34.20 lakh shares and mutual fund units with a turnover worth about Tk 9.97 crore.
