Simultaneous increased participation from profit bookers and position takers contributed to higher turnover
Stock indices corrected for a second consecutive session on Sunday as profit booking dominated a larger group of investors' decision making.
A simultaneous market rush to book some profits and also to take fresh positions on selective stocks has resulted in a 9% increase in daily turnover at the Dhaka Stock Exchange (DSE).
Floor traders said DSEX, the key index of the premier bourse, made an effort to beat the sellers at the opening. However, within less than 15 minutes, sellers took control and their dominance killed a few interim turnaround efforts.
By the end of the day, DSEX managed to minimise its daily loss at 0.31% and closed at 5,088 points.
Shariah Index, DSES, and the blue chip index, DS 30, lost more – 0.83% and 0.5%, respectively – as profit bookers were more active in selective stocks.
The risk-averse investors showed profit-booking sell pressure on sector specific large-cap stocks, to realise gains, and adopted a wait-and-see approach ahead of an upcoming declaration from June-ending listed companies, EBL Securities wrote in its daily recap.
However, opportunistic investors took fresh positions on the general insurance, life insurance, mutual funds, and financial institutions sectors, it added.
Meanwhile, "Market turnover crossed Tk1,103 crore following active participation by investors," noted the brokerage firm's research team.
Investors' attention was mostly concentrated on general insurance, occupying nearly one-fourth of the day's turnover, while the sector added 4.52% to its market capitalisation despite analysts' worries of a sharp rise and overvaluation.
Pharmaceuticals and chemical companies contributed more than 11% to the turnover, followed by non-banking financial institutions with nearly 10%.
Except for insurance, mutual funds, travel and leisure, fuel and power, and NBFI, other sectors faced price corrections.
IT, food and allied as well as ceramics, were the biggest losers.
Out of 356 issues traded at the DSE, 124 issues advanced, 194 declined and 38 remained unchanged.
Meanwhile, the Chittagong Stock Exchange had 11 gainers against 146 losers while prices of 31 scrips remained unchanged in the end.
Market demand for non-selective stocks helped the broader indices minimise loss while losses for blue chip indices like the CSE 30 or CSE 50 were bigger in the percentage scale.
Turnover at the CSE also increased to Tk17.37 crore from Tk15.17 crore on Thursday.