Stocks post losses again as investors remain cautious

Stocks slipped again yesterday after posting marginal gains on Sunday as investors stood on the sidelines observing the market movement.

DSEX, the prime index at the Dhaka Stock Exchange (DSE), lost 5 points, or 0.1 percent, to close the day at 3,956. 

The Shariah-based DSES index also slipped a point, or 0.1 percent, to settle at 917, while the blue-chip index DS30 went down 3 points, or 0.2 percent, to stand at 1,325. 

Meanwhile, the benchmark index Caspi at the Chittagong Stock Exchange (CSE) dropped 11 points, or 0.1 percent, to close at 11,250. 

The market displayed a declining trend since the beginning of the trading session yesterday in its intraday performance graph. During the mid-session, the graph moved slightly upwards and then remained flat till the end of the session. 

According to the Daily Market Review of UCB Capital Management Ltd, aside from the Tk44.1 crore block trade, shortage of liquidity in the market caused the investors' participation to remain sluggish.

A block trade involves a significantly large number of equities or bonds being traded at an arranged price between two parties. 

The review added that the investors were watchful of the upcoming budget declaration of the fiscal year 2021. 

Life insurance stocks posted the highest price appreciation of 0.7 percent while pharmaceutical stocks witnessed the highest price correction of 0.3 percent in the sector return board yesterday. 

Among the large-cap sectors, banking exhibited a loss of 0.1 percent while cement lost 0.01 percent and telecoms lost 0.1 percent, and textiles and telecom both remained flat. 

Turnover at the DSE increased by 51 percent to Tk106 crore yesterday, from Tk70 crore in the previous session.

However, turnover at the port city bourse decreased by 85 percent from Tk9.8 crore to Tk1.5 crore.

The food and allied sector contributed the most – 36.5 percent – to the total turnover value. It was followed by pharmaceutical stocks adding 24.2 percent and the banking sector adding 19.4 percent on the sector-wise turnover distribution board. 

Olympic Industries Ltd topped the turnover chart with a turnover value of Tk13.1 crore, closing the day at Tk150.2 per share. The stock was followed by Exim Bank of Bangladesh Ltd with a turnover value of Tk6.9 crore, closing the day at Tk8.7 per share.

Phoenix Finance 1st Mutual Fund was the best performer on the gainers' table, gaining 2.5 percent and closing at Tk8.1 per share. 

ACI Formulations Ltd was the worst loser, shedding 4.3 percent and closing at Tk103.9 per share. 

Out of the 283 issues traded yesterday, only 12 advanced, 24 declined, and 247 remained unchanged on the DSE trading floor.