Turnover increased amid selling pressure
As the investors’ balance adjustment and profit booking increased sell orders, the market closed in the red zone
Most shares at both the stock exchanges lost price on Wednesday, leading to a fall in indices. The turnover at the stock market increased, however. The sellers dominated the day, said the analysts.
At the first half of the trading session, the indices were going through ups and downs amid portfolio rebalancing attempts – buying more potential stocks and selling those with fewer potentials.
As the investors' balance adjustment and profit booking increased sell orders, the market closed in the red zone.
Investors with limited buying power have to sell stocks to pay for what they buy on the same working day, which market professionals call balance adjustment.
The DSEX, Dhaka Stock Exchange's key index, closed at 4,936, losing 0.26 percent. Blue-chip index DS30 closed 0.7 percent down, on the other side.
Meanwhile, investors' higher participation in trading activities increased turnover at the DSE – 13.7 percent from the previous day.
The Chittagong Stock Exchange (CSE) saw over 60 percent slump in trading, coming below Tk12 crore.
The CSCX, CSE's broad index, ended in moderately down to 9,136. Blue-chip index CSE30 was up by 0.2 percent.
Among major sectors cement, ceramic, fuel and power, general insurance, mutual funds and pharmaceuticals closed in green zone while jute, telecom, IT, paper and printing, travel and leisure, bank, textile, engineering and tannery ended in red zone.
With 1.08 loss of market capital, telecommunication showed the most negative movement.