Indices fall in stock market due to price correction

The index fell on Sunday this week after its rise throughout the last week. Market watchers consider such a decline in the index after a sustained rise as price correction.

Basically, the share prices of most companies rise when the stock market continues to rise. Thus, when investors make profits by selling shares after a sustained rise, it is considered price correction.

The main index DSEX negative 0.02 per cent lost 1.27 points and closed at 6,251.29.

The blue-chip index DS30 negative 0.13 per cent, the Shariah-based index DSES negative 0.02 per cent, and the large-cap index CDSET negative 0.06 per cent closed at 2,112.47, 1,360.44, and 1,206.96 points respectively.

The premier bourse of the country registered a mere flat session on the first trading day of the week as most of the investors clung to a bleak outlook of the market owing to the prevailing tensions on the macroeconomic and political fronts, EBL Securities, a stockbroker, said in its daily market review.

Investors were active on both sides of the trading fence owing to subdued confidence, resulting in mild volatility of the market indices throughout the session, it said.  

However, the allure of potential quick gains prompted a section of investors to continue their chase for particular rumour-based stocks, it added.

Large cap sectors posted mixed performance on Sunday. Pharmaceutical booked the highest gain of 0.08 per cent, followed by Fuel & Power increased 0.04 per cent, Bank 0.01 per cent, NBFI negative 0.01 per cent, Engineering negative 0.02 per cent, and Food & Allied negative 0.13 per cent respectively.

Block trades contributed 6.6 per cent of the overall market turnover. Central Pharmaceuticals Limited positive 10 per cent was the most traded share with a turnover of Tk 33.4 crore.

Meanwhile, market turnover rose by 19.5 per cent to Tk 537 as against Tk 450 crore in the previous session.

On the sectoral front, Pharma 20.2 per cent issues exerted the highest turnover, followed by Engineering 18.5 per cent and Food 8.9 per cent stocks.

Most of the sectors displayed mixed returns, out of which Mutual Fund 0.8 per cent, Paper 0.5 per cent and Ceramic 0.3 per cent exhibited the most positive returns on the bourse on Sunday, while Jute decreased 2.8 per cent, General Insurance 0.9 per cent and Cement 0.7 per cent exerted the most correction.

Out of the 392 issues traded, 56 advanced, 101 declined and 235 remained unchanged.

The port city bourse, CSE, however, settled on green terrain. The selected indices (CSCX) and All Share Price Index (CASPI) edged up by 5.0 points and 9.3 points respectively.