Stocks back in losing streak, turnover drops 6%
During the first two and half hours on Wednesday (22 March), the key index DSEX of the Dhaka Stock Exchange (DSE) fell by 4 points to 6,218
Dhaka stocks failed to continue their recovery for the second straight session on Wednesday.
DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), closed 0.26% lower as only 17 scrips advanced and 82 declined.
"The Dhaka bourse indices failed to uphold the recovery mode because cautious investors perceived the temporary upbeat momentum in the market as an opportunity to offload their holdings in order to secure short-term gains," EBL Securities wrote in its daily market commentary.
Investors are taking cautious stance and preferring to hold cash positions over positions in equities in the face of unclear indication of the market momentum, it added.
Meanwhile, the Dhaka bourse observed a slight decrease in participation as total turnover declined by 6% to Tk328 crore.
Stockbrokers said, the upcoming withdrawal of interest rate cap and the uncertainty regarding the fate of floor prices in the stock market kept investors puzzled while they try to trigger their buy decisions. And the ongoing volatility only added to their confusion that sent them on the sidelines.
During the closing bell on Wednesday, less than one in every four stocks had buyers.
Eleven scrips fell to the respective floor prices on Wednesday and they were Aziz Pipes, Crystal Insurance, Desh General Insurance, Federal Insurance, Global Insurance, Janata Insurance, Karnaphuli Insurance, Padma Life, Pioneer Insurance, Purabi General Insurance, and Republic Insurance.
Meanwhile, Anlima Yarn, Aramit Ltd, Paramount Insurance, Renwick Jajneswar and RSRM Steel emerged in regular trading above their floor prices.
On the sectoral front, IT, food, and travel stocks made nearly 40% of the DSE turnover, while no sector except for financial institutions managed to withstand the selloff.
IT, life insurance, and services were the top losers of the day.