Stocks further down on fifth consecutive red session
Correction observed by hyped-up securities like BAT Bangladesh, Beximco and LankaBangla Finance
Stocks went further down in the fifth consecutive losing session on Tuesday, while market turnover increased by one-fourth.
Analysts blamed investors' low appetite for stocks amid the ongoing correction, while a number of investors continued to prefer liquidating some of their positions in stocks which gained a lot over the last rally.
EBL Securities wrote to its clients, "The equity market has impeded under selling pressure as investors' appetite remained subdued amid a bearish sentiment."
Out of the 339 issues traded at the Dhaka Stock Exchange (DSE), 66 advanced, 156 declined, and 117 remained unchanged.
DSEX, the broad-based index of the DSE, has decreased by 67.5 points or 1.25% to close at 5,317.72 on Tuesday.
Like the previous sessions, blue-chip index DS30 led the decline with a 1.94% slump to close at 2,018 points.
Also, no special demand for Shariah-compliant stocks was observed as DSES, the benchmark followed by Shariah-compliant investors, fell by 1.25%.
Meanwhile, sellers' dominance on the day of a new stock's listing finally pushed daily trading turnover 26.7% higher from Monday's Tk467 crore which was at the seventh-month low for the DSE.
eGeneration Ltd, the IT firm which had its stock market debut on Tuesday reached the highest allowable limit for the day.
"The confidence crisis is primarily driven by lower turnover and major correction observed by hyped-up securities such as Beximco, British American Tobacco, LankaBangla Finance," wrote EBL Securities analysts.
Beximco observed immense sales pressure and contributed nearly one-third of the total daily turnover.
On the sectoral front, only IT, telecommunication, paper, fuel and power sectors gained little while miscellaneous, pharmaceuticals, jute, engineering, food, and life insurance sectors led to the fall.
The Chittagong Stock Exchange (CSE) again arrested the decline of its indices better if compared to their peer indices at the DSE.
Turnover at the port-city bourse decreased to Tk26.5 crore, a 36% down from that in the previous session.