Stocks fell further for the third consecutive session yesterday with turnover plunging to seven-month low.
The decline was attributed to securities regulators’ margin loan restriction on new and category changing issues coupled with unimpressive third quarter earnings, analysts say.
The benchmark index DSEX lost 10 points or 0.3% to 4,579 – lowest since July 8 this year. With the losses, the index lost a total of almost 273 points within 19 trading sessions of this month.
The Shariah index DSES was down over 4 points or 0.5% to 1,097. The blue chip comprising index DS30 closed at 1,730, slipping around 5 points or 0.3%.
The Chittagong Stock Exchange Selective Category Index CSCX shed 17 points to 8,512.
Almost all sectors came under modest sale pressure with life insurer leading the way declining 1.5%, followed by textile 1%.
Other negative performing sectors included telecommunications, power, food and allied, engineering, cement, NBFI and textile.
Marginal gain of large cap sectors - bank and pharmaceuticals - offset some losses of the market.
Trading activities took another hit as the DSE turnover stood at Tk262 crore, which is 11.6% lower over the previous session’s value.
IDLC Investments said another dull day passed over the bourse amid directionless trading behavior from the investors.
“Coupled with demoralised investors’ sentiment, regulatory bar on providing margin loan in new issue and re-categorised issue for the first 30 trading sessions caused some pessimism in overall market.”
On Tuesday, BSEC suspended margin loan for the newly listed and category changed issues in their first 30 trading days.
Lanka Bangla Securities said the modest weakness was seen as investors cashed in on some of the recent strengths in the market as weak earnings announcement continued to send negative vibe in market.
Stock prices continued to drop across the board as sell-off battered the market.
Out of 315 issues traded, 108 closed positive, 160 negative and 47 remained unchanged.
