Stocks finished flat amid high volatility yesterday, weighed down by fear of fresh political chaos combined with year-end closing.
The market witnessed slow trading throughout the day with turnover at the Dhaka Stock Exchange (DSE) dipping below Tk200 crore. The intra-day volatility was around 30 points.
The benchmark DSEX lost 15 points or 0.4% to close at 4,823, hitting lowest 4,809 after mid-session and extending its losing streak for second straight session.
The Shariah index DSES was marginally down 4 points or 0.4% to 1,138. The comprising blue chips DS30 ended at 1,786, shedding 4 points or 0.3%.
Chittagong Stock Exchange (CSE) Selective Categories Index, CSCX, declined 31 points to 9,021.
Turnover took a jolt in fear of political chaos and year-end closing when institutional investors realigned their portfolios. DSE turnover stood at Tk191 crore, a fall of more than 24% over the previous session.
Though small caps advanced at the beginning of the session, profit booking snapped the early gain on those.
Textile sector was the worst loser declining 1.5% in its market capitalisation, followed by engineering 1.3%, ceramic 1.2%, pharmaceuticals 0.6% and energy 0.5%.
However, slight rise in heavyweights, banking and telecommunication issues, helped the market to rein losses.
Majority of stocks’ prices eroded as out of 309 issues traded, 168 declined, 101 advanced and 40 remained unchanged at DSE.
IDLC Investments said while market struggled to remain positive, waves of selling pressure beat it down in frequent intervals, causing it to close flat.
Investors remained cautious amid some fear of volatility in the political landscape and before the end of year, it said.
Lanka Bangla Securities said benchmark index extended the losses as investors are yet to see any near term trigger.
“Broad market is likely to consolidate at this level because concerns in terms of macro data like export, remittance flow and political outlook still remain and no direction has come out yet to push the market up,” it said.
Square Pharmaceuticals became the turnover leader with shares worth Tk9 crore changing hands, followed by Grameenphone, Saif Power Tech, Lafarge Surma Cement, Beximco Pharmaceuticals and Agni System.
