Stocks witnessed a mild correction on DSE Wednesday, after posting the highest single-day gain in 12 months in the previous session, as the risk-averse investors booked quick profits.
The market insiders said stocks slipped in the red, driven by the quick profit booking sell pressure, as the investors are yet to become confident about long-term market stability.
The market witnessed strong turbulence in the first hour of its trading, despite the first 30 minutes being in a positive territory, and then moved in sideways on minor bearish tone.
At the end of the session, DSEX, the prime index of the Dhaka Stock Exchange (DSE), settled at 4,258.20, losing 13.98 points or 0.33 per cent, after surging 100.77 points in the previous day.
LankaBangla Securities, a stockbroker, said, "Index closed lower as Dhaka stock market was routed by price correction after the highest single-day gain in previous session".
On Tuesday, the prime index of the DSE posted 100.77 points or 2.42 per cent gain, the highest single-day gain in the last 12 months since May 10, last year.
"After a relentless climb in benchmark index, stocks went for a natural correction," said the stockbroker.
However, bargain hunting offered support to the market despite the pullback by lukewarm earnings declaration and mixed industry news, said the stockbroker.
The two other indices also closed in the red. The DS30 index, comprising blue chips, fell 2.69 points or 0.16 per cent to finish at 1,641.82. The DSE Shariah Index (DSES) shed 1.85 points or 0.18 per cent to close at 1,042.23 points.
Meanwhile, market participation remained flat with a total turnover value stood at Tk 4.0 billion, which was 1.30 per cent lower than the previous day's Tk 4.06 billion.
Engineering, fuel and power and pharmaceuticals sectors were the turnover leaders, grabbing 19.6 per cent, 19.5 per cent and 13.8 per cent respectively of the total trade value of the day.
IDLC Investments, a merchant bank, said, "Mini-cap and large-cap stocks faced some selling pressure as both cap classes dropped by 0.5 per cent each".
Asian Tiger Capital Partners, an asset management company, said the market failed to continue its positive enthusiasm Wednesday, after previous day's sharp rally of above 100 points and returned to its downtrend trajectory.
On the economic front, inflation declined 4.0 basis points to 5.61 per cent in April on the back of the lower rice and vegetable prices at home and slump in commodity prices in the international market.
The large-cap sectors showed mixed performances. Engineering sector posted the highest gain of 1.29 per cent, followed by pharmaceuticals sector 0.63 per cent and food and allied sector 0.2 per cent.
Fuel and power sector witnessed the highest loss, falling 1.49 per cent, followed by non-bank financial institutions sector 0.92 per cent and telecommunications sector 0.91 per cent.
The losers took a strong lead over the gainers, as out of 318 issues traded, 198 closed lower, 94 higher and 26 remained unchanged on the DSE trading floor.
Bangladesh Steel Re-rolling Mills dominated the turnover chart with 2.56 million shares worth above Tk 380 million changed hands, followed by Linde BD, BSRM Steels, MJL BD and Beximco Pharmaceuticals.
Pragati Life Insurance was the day's best performer, posting a rise of 9.96 per cent, while Alltex Industries was the worst loser, plunging 9.43 per cent.
The port city bourse, Chittagong Stock Exchange (CSE), also returned to the red, with its Selective Categories Index, CSCX, falling 12.47 points to 7,969.36.
Losers beat gainers, as 1139 issues closed lower, 69 closed higher and 27 remained unchanged on the CSE trading floor.
The port city bourse traded 11.16 million shares and mutual fund units worth Tk 252 million in turnover.
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Source: The Financial Express