Stocks slipped in the red with volatile trade yesterday, a day after one-sided national election that saw low turnout.
Investor participation declined sharply, indicating that most investors remained on the sidelines fearing renewed political violence in the days ahead, analysts say.
The benchmark DSEX closed at 4,296, shedding 18 points or 0.5%, breaking a four-day modest rally. The DS30 Index comprising blue chips saw fractional gains of 0.95 points or 0.06% to 1,506.
The Chittagong Stock Exchange Selective Category Index, CSCX, rose 42 points to 8,436.
The DSE total turnover was dry on the post-election day and stood at over Tk300 crore, which is 15% lower from the previous session. Engineering sector accounted for over 17% of the total turnover.
“Soon after opening in the positive zone, market slips into red,” said Lanka Bangla Securities in its daily market analysis.
It said investors showed interest only in engineering, pharmaceuticals and food & allied shares over financial stocks on the back of apprehended turbulence in the political arena after election where main opposition party did not participate.
“If political clashes continue, utility and FMCG companies are expected to perform better compared to other sectors in terms of profitability,” it said.
Under this situation smitten with high political tension, textile, banks and financial institutions are at most risk.
The market recouped some losses in the last hour of trade as mid and low-cap stocks saw some buying interests towards the close.
Bank, fuel and power, and textile sectors lost 1.1%, 0.9% and 1.0% respectively in their market capitalisation.
Share prices of more than 70% stocks eroded as out of total 288 issues traded, 92 gained, 157 declined and 39 remained unchanged.
IDLC Investment said affected by existing ambiguity in political scenario, turnover retracted by 15% as participants were watchful about investment outlook.
Lanka Bangla Finance was the most traded stocks, followed by Golden Son, Unique Hotel and Resorts, Active Fine, Appollo Ispat, Generation Next Fashion and Summit Purbanchol Power Company.
