Stocks slide despite turnover crossing Tk1,000cr
Highlights
- Shariah index fell 0.3% to 1,374
- Blue-chip inched up to 2,191
- Issues advanced: 37
- Issues declined: 160
- Unchanged: 179
Equity indices gave up on Monday after six consecutive days of strong battle between the market bulls and bears.
DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), settled at 6,325 to demonstrate the biggest 0.21% daily decline since the market started its recent leg of recovery on 15 June.
The DSE turnover, however, increased by 17.6% to Tk1,084 crore, the highest since 6 June.
Just like the recent days, the market opened higher, having a number of trendy stocks on top of the gainers list and the buyers kept them afloat till the middle of the session.
In the second half of the trading session, there came adamant sellers who booked profits from most of the stocks and that triggered a further selloff by more investors who wanted to reduce their exposure in stocks and hold some cash.
Meanwhile, bargain hunters who were active enough in a wide range of stocks till morning, turned a bit conservative that did not help an intraday bounce back, said stockbrokers.
Analysts said there had been some confusions regarding the stock market impact of the increase in interest rates in the new fiscal year that also saw taka falling against the dollar with the new central bank move for a market based exchange rate mechanism.
There's a widespread criticism of the market behaviour nowadays when weaker-fundamental companies in the stock market were significantly outperforming their stronger counterparts. That also increased a selling pressure in a number of small and mid-cap stocks, according to stockbrokers.
"The market managed to remain afloat till the mid session, but subsequent dominant selling pressure led the core index to dip into negative territory while eroding the early-hour gains in particularly trendy stocks," EBL Securities wrote in its daily market commentary on Monday.
"However, opportunistic investors continued to chase specific stocks that recently broke out from the floor price to seize opportunities for harnessing quick gains," it added.
On the sectoral front, food, fuel and power, textile were the most active sectors in turnover terms. Life insurance, IT and paper sectors led the fall while travel and cement sectors ended the day in green territory.
Only 37 scrips advanced and 159 declined in the DSE.
Having all its indices down, the Chittagong Stock Exchange registered a 64% jump in turnover to Tk27 crore.