DSE loses for 2nd session as investors rush to capitalise on recent gains

The Dhaka bourse on Wednesday declined marginally extending the losing streak for the second session following corrections experienced by major sectors.

A majority of the listed securities above the floor fell, triggering the correction of the broad index.

DSEX, broad index of the Dhaka Stock Exchange (DSE), displayed volatility due to cautious moves of a section of investors while others offloaded holdings to capitalise on appreciation of stocks in previous sessions.

The market opened the day's session with a negative note and the DSEX exhibited ups and downs for the first hour.

Later, an upward trend of the broad index was observed till the midsession.

After the midsession, the index went below the day's starting mark and finally closed with a marginal loss.

At the end of the session, the DSEX settled at 6,275 points with a loss of 0.20 per cent or 12.76 points.

It had gained 71 points in the three sessions executed between Wednesday last week and Monday. Then the DSEX lost 3.31 points on Tuesday.

The DS30 index comprising blue chip securities also declined marginally on Wednesday due to price erosions of 12 companies between 0.06 per cent and 3.73 per cent.

The stocks that slid included ADN Telecom, Bangladesh Shipping Corporation, Heidelberg Cement, Sea Pearl Beach Resort & Spa, and Unique Hotel & Resorts.

Major sectors that experienced corrections included travel & leisure, services & real estate, food & allied, fuel & power and pharmaceuticals & chemicals.

Their market capitalisation dropped 0.1 per cent to 2 per cent on the DSE.

The paper & printing sector experienced the highest correction of 2.9 per cent on Wednesday. Of the six companies of the sector, five slumped on the DSE.

Travel & leisure also experienced significant corrections as two out of the four listed companies of the sector declined.

EBL Securities in a market review said investors' appetite for taking positions in equities had been weakened since the market was yet to show any major trigger to sustain positive momentum.

"Cautious investors preferred to reduce their capital market exposure and stay on the sidelines amid uncertainties regarding the market outlook," it said.

Meanwhile, the turnover volume decreased 14 per cent to Tk 4.33 billion.

Of the 334 issues traded, 32 advanced, 127 declined and 175 were unchanged.

Investors' participation was concentrated mostly on the food & allied sector that grabbed 20.8 per cent of the market turnover.

Aramit Cement was the number one gainer with a 9.62 per cent rise while Olympic Accessories was the worst loser after shedding 5.08 per cent.

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