Stocks ended lower for the fifth consecutive session yesterday, as selloff picked up in heavyweight companies.
The market dipped at open losing over 50 points till mid-session, but some modest buying pressure at the wee hour has helped the market recover some points.
At the end of the day, the benchmark DSEX lost 36 points or 0.8% to close at 4,519 – its lowest since January 16. Shariah Index, DSES, was down 11 points or 1.2% to 983. The blue-chip comprising DS30 ended at 1,624, shedding 11 points or 0.8%.
Chittagong Stock Exchange Selective Category Index, CSCX, fell 68 points to close at 8,785.
Trading at DSE still remained sluggish with turnover standing at Tk338 crore, an increase of nearly 5% over the previous session.
Emerald Oil Industries, in its first trading day, gained 400% from its offer value of Tk10 to emerge as the top turnover leader and accounted for about 11% of the total turnover.
Except banks, all the major sectors closed red. Banking sector ended flat after a volatile movement. Other major sectors like pharmaceuticals, tannery, textile, food and allied, power and telecommunications closed lower.
“Market has entered into an oversold position after declining for last five consecutive sessions over jittery attitude of investors,” said Lanka Bangla Securities in its market analysis.
It said market got spooked as investors became more concerned about the market over heavy selloff on major heavyweights sectors.
On the economic front, Bangladesh Bank has upgraded their estimation of the country’s economic growth by 0.01% in its latest second quarter report, reckoning the forecasted GDP range from 5.8% to 6.1%. “For now, investors are eyeing on a set of improved economic indicators to knock into the target,” said Lanka Bangla.
IDLC Investments said the bourse observed strong waves of sell pressure, as profit booking and panic dominated throughout the session. “With pessimism displaying persistence over last few sessions, market sentiment retracted further. Prolonged scrip-wise volatility spurred investors’ greater intention on re-balancing portfolio.”
Zenith Investment said stocks failed to regain any ground after continued decline for more than a month. “The ongoing correction may soon come to an end and the chances for the market to re-bounce are very likely during next week or so as investors patience is running thin.”