Stocks dropped in volatile trade on Sunday with the benchmark index, DSEX, slipping below 4,000-mark after nearly seven weeks.
The market rallied in the morning but was short lived as investors profit taking attitude surfaced to halt the momentum. Most of the trading was based on short term contracts causing high volatility and wide price swings.
After rising more than 15 points in first session, the benchmark index shed 45 points or 1.2% to 3,969, its lowest since August 13 this year after ending flat in the previous session.
Mutual funds shined on the day as most of mutual funds were trading below their respective net asset value (NAV). As a result, eight mutual funds appeared in the list of top ten gainers with increased turnover. Thirty six out of 42 listed funds gained.
Trading activities remained sluggish as the turnover value was Tk3.4bn, slightly increase of more than 9% from earlier session.
Lanka Bangla Securities in its daily market analysis said the tenure of current government nears ending with no significant progress concerning imminent election. Stock market has continued to generate negative return and has closed below the psychological 4,000 level, it said.
Frequent scrip wise swings, with 101 out of 291 traded scrips posting more than 4% change of their respective price amid back and forth volatile situations aided market sentiment to retract severely.
Most of the trading was based on short term contracts which are keeping volatility high and price swings wide, said Zenith Investment.
All the major sectors posted losses except banks, life insurance and cement which remained flat. Engineering and textile were the big losers as the two sectors went down by 2% each.
Other major sectors, including pharmaceuticals, non-banking financial institutions and power performed negatively. The gainers outpaced losers as out of 271 issues traded, 177 advanced, 97 declined and 17 remained unchanged in the prime bourse.
The volatility of the market only reflects that the market is still confused giving no clear indication of the future scenario, said Zenith Investments.
ICB AMCL First Mutual Fund has been delisted with effect from Sunday. The fund is the first closed ended fund that completed its ten-year tenure in the exchange.
Bangladesh Submarine Cable Company Ltd topped in terms of turnover value, followed by CMC Kamal, Argon Denim, JMI Syringe and Medical Devices Ltd, Continental Insurance and Generation Next.