Stocks posted steep fall yesterday, triggered by depressed first quarter earnings that poured in the market.
The benchmark index DSEX lost 58 points or 1.3% to close at 4,567, extending its losing streak for the third straight session and hitting one-month low.
Shariah Index DSES witnessed marginal losses of 5 points or 0.5% to 1,012. The blue-chip comprising DS30 was down 20 points to 1,669.
Chittagong Stock Exchange Selective Category Index, CSCX, closed at 8,795, shedding 107 points.
All the major sectors ended in red today except telecommunications that soared 1.2% and pharmaceuticals 1.5%. Banking sector was the worst losers with a drop of 29% after gain in the previous session.
Trading activities declined significantly with DSE turnover hitting 2-week low to Tk387 crore, going down by 11.1% than that of the previous session.
IDLC Investments said quarterly declaration centric trading pattern called for larger correction. “Besides, depressed earnings growth empowered with recent waning tone unleashed panic sale pressure.”
It said buyers retreated, creating a vacuum in demand side. As a result, investors observed 11 sessions’ lowest activity amounting turnover below Tk400 crore, it said.
Lanka Bangla Securities said market continued to fall into red territory amid substantial volatility as banking stocks were under pressure and manufacturing stocks continued to drag.
It said market is seemed to react to the fundamental stocks as index is likely to take cue from the quarterly and annual earnings of the companies.
“Investors churned their portfolio heavily with some picky stocks in recent time and they were mostly bullish on multinational stocks over financial and other local manufacturing stocks.”
Zenith Investments said market scenario was an extension of previous session’s dry performance, where major sectors shed heavy losses.
“Although, technical and fundamental indications still indicate market turnaround, but if the volume keeps getting weak then it will be difficult for the market to land on a strong support zone.”
Grameenphone was the most traded stocks with shares worth Tk20 crore changing hands, followed by Meghna Petroleum, Bangladesh Submarine Cable Company Ltd, Lafarge Surma Cement and Heidelberg Cement.
