Stocks welcomed the New Year with subdued mood yesterday, the first trading day of the year.
The market, however, opened on optimistic note, but the momentum faded away after the first session, as the benchmark index DSEX fell marginally over 5 points to 4,624.
The Shariah index DSES rose marginally 2 points to 1,109. The blue chip comprising index DS30 settled at 1,759, gaining almost 9 points or 0.6%.
The Chittagong Stock Exchange Selective Category Index CSCX was up only 12 points to 8,584.
Risk averse investors preferred to stay on the sidelines as was indicated in poor turnover. The DSE turnover stood at Tk366 crore, down 15% over the previous session.
Brokers say investors were worried over the renewed political turmoil centering on the much-talked about 5th January when both the ruling party Awami League and its arch-rival BNP called programmes in the same venue.
IDLC Investments said: “The first session of the year started in an upbeat tone, riding on fresh hope. However, worries of 2015 were carried down and a steep decline occurred during mid-day.”
The market couldn’t recover from the decline, rather it fell further, ultimately wiping out the entirety of the early hour enthusiasm, it said.
Investors reacted negatively to the heavyweight banking scrips over the news of slim operating profits made by the banking sector in 2015.
The sector was the worst sufferer declining 1.2%, led by Mercantile Bank that dropped 4.5%. Out of top 10 losers, three came from banking sector.
Zenith Investments said the position of the market still remained underweight on the first trading day of the New Year as the index closed on a somber note.
The bourse kicked off with a positive vibe, but the sell pressure mainly from the banking sector forced the market to change its gear the other way round, it said.