Dhaka stocks slide for third straight day
Dhaka stocks continued to erode for the third consecutive day as investors on Wednesday too opted to book profits gained during over a week-long rally.
The Dhaka Stock Exchange (DSE) opened higher but veered off course within an hour, with the benchmark index settling 23 points, or 0.36%, down at 6,371.
During the 10 sessions till 11 February, the DSEX gained 368 points as investors poured funds into the market in the wake of a significant correction due to the removal of the floor price.
However, they shifted focus to maintaining capital gains through selling stocks for the last three days, resulting in the DSEX declining by 76 points.
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Among the traded scrips on Wednesday, 79 showed advancement, 278 experienced a decline, and 38 remained unchanged.
The market turnover decreased by 29% to Tk1,173 crore compared to the previous session.
Moreover, the port city bourse, Chittagong Stock Exchange, also closed lower, with the All-Share Price Index (CASPI) dropping by 102 points, or 0.55%, to 18,398.
Market insiders said although the buy side dominated the market in the initial phase of the session until mid-day, the selling side became more active later.
EBL Securities stated in its daily market commentary that the benchmark index of the Dhaka bourse logged consecutive corrections for three straight sessions owing to cautious investors' continuous sell dominance across the trading board, as the prevailing volatility in the market has somewhat faded the reinstated investors' optimism.
The EBL Securities commentary further noted that the market mostly remained downbeat, with the majority of scrips experiencing a correction mode as risk-averse investors preferred to partially liquidate their holdings and remain watchful of the current volatility in the market.
Investors are adopting a wait-and-see approach to observe market momentum and look out for lucrative investment opportunities following the corrections, it added.
Bank stocks played a pivotal role in the market's decline on Wednesday, with many experiencing a downturn amid concerns related to the merger issues between the good and bad banks.
Investors showed heightened interest in Best Holdings shares, making it the highest turnover stock with a value of Tk121 crore at the DSE, followed by Lovello, Fortune Shoes, and Fu Wang Ceramic.
Most sectors displayed dismal returns, with ceramics, non-bank financial institutions, and jute exerting the most corrections on the bourse, while cement, travel, and tannery exhibited the most positive returns.
