Stocks dropped with volatility yesterday, failing to sustain the previous session’s rally seen after eight-day of losses.
The market moved in the range of 65 points through intraday, creating volatility, as investors remained confused over the market’s direction and the economy as well, according to analysts.
The benchmark index DSEX lost 26 points or 0.7% to settle at 4,384, hitting the highest 4,449 in the morning.
Shariah Index DSES was down almost 10 points or 1% to 973. The blue-chip comprising DS30 fell 15 points or almost 1% to 1,589. Chittagong Stock Exchange Selective Category Index, CSCX, closed at 8,432, shedding over 40 points.
“Activities were sluggish in the initial hours, as majority participants remained cautious observer. Eventually, the resistance crumbled and market observed shed off amid increasing activities,” said IDLC Securities in its daily market report.
Investors were not convinced over the GDP growth rate for the current fiscal year, forcing the index to undergo an intra-day technical correction, said an analyst at a top brokerage firm.
On Wednesday, the government projected 6.12% GDP growth for fiscal year 2013-14 to be ended next month, beating economists and donor agencies estimate of below 6%.
“Investors avoided aggressive buying, thus keeping the benchmark to oscillate within a narrow range,” said the analyst.
A stock dealer said investors were seen to be adopting a cautious approach, wondering over the future course of action.
Trading activities also remained dull as DSE turnover stood at Tk258 crore, slightly down from previous session’s Tk271 crore.
Losers outpaced gainers strongly as out of 291 issues traded, 87 advanced, 159 declined and 45 remained unchanged.
Selling pressure witnessed in the engineering, textile, food and allied, insurers, power, cement and financial institutions. The market bellwether sector banks ended flat.
The performance of the banking sector, throughout most of the trading day was laudable however due to lack of support from other sectors, banks too had to face down.
Shares of Wata Chemical still remained hot, as it witnessed no sellers since it was brought back to the main market from the OTC market on May 14.
Square Pharmaceuticals was the most traded stock for second consecutive session, followed by Lafarge Surma Cement, Prime Bank, Heidelberg Cement, Grameenphone, Orion Pharmaceuticals and Hwa Well Textile.
