Stocks fell yesterday as late selling pressure on banks and fast moving consumer goods (FMCG) companies cut early gains despite continued shining of multinational companies.
The market was in the positive territory almost the entire session but selloffs in the wee hour on bank, textile and, fuel and power stocks trimmed gains.
After rising over 25 points in the morning, the benchmark DSEX ended at 4,586 with a fall of more than 21 points or 0.7 %. However, the blue chips index DS30 was marginally up 2 points or 0.3% to close at 1,022. The Shariah index DSES saw fractional losses of 0.2 points to 1,682.
The Chittagong Stock Exchange Selective Category Index, CSCX, dropped 69 points to 8,872.
Strong buying and selling pressure has pushed DSE turnover to Tk626 crore, a jump of almost 24% from the previous session.
IDLC Investments said despite a bullish start, the session ended red as morning hype subsided at the later part. Multinational firms continued shining, stimulated further by the corporate declaration of 400% cash dividend by Reckitt Benckiser. However, due to weak performance in other sectors, particularly mini-cap class, upbeat vibe could not sustain.
Trading of Lafarge Surma Cement and debutant Matin Spinning added to participation span. Thus, turnover increased by 24% and crossed Tk600 crore after 25 sessions.
Lanka Bangla Securities said the market moved doughtily as multinational manufacturing and telco stocks continued to see buying interest in noon trade with large volume accumulation.
However, heavy selloffs on banking and FMCG stocks capped the gain of the large-cap sector and, in last hour, it heavily came on benchmark index, pushing it down, it said.
On the economic front, finance ministry at a meeting expressed that budget deficit of the current fiscal year might go beyond the target of 4.6% of GDP, which might result in crowding out effect in banking system, it said.
On the capital market front, bank continued to lose market value, and it went down by 1.4%.
But other major sectors, including telecommunications, tannery, pharmaceuticals and cement, ended in the positive territory.
Zenith Investments said index slowed its pace, yet the high volume turnover indicates the market did not fully lose its strength to resume its bullish pattern for the future.