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Stocks were back in the red on Thursday after a single-day break as cautious investors exerted sell pressure to secure short-term gains from the persisting volatile market.
Sea Pearl Beach Resorts, LafargeHolcim, Eastern Housing, Unique Hotel & Resorts, and Emerald Oil Industries were responsible for 6 points drop of the prime index of the Dhaka Stock Exchange.
As a result, the prime index of the DSE lost the points it gained the day before. The DSEX went down 9.90 points to settle at 6,307.
The market failed to sustain the upbeat momentum owing to the last-hour heavy selling pressure, as cautious investors opted for booking short-term profits, said EBL Securities in its regular market analysis.
The market was in the positive mood for most of the day's trading session, but sellers took control in the final hour, dragging the market index into the negative territory, said the stockbroker.
The market has been bearish since the floor price was imposed more than a year ago, with some periodic upward movements that failed to sustain amid investors' confidence crisis.
Analysts say the prevailing floor price discourages investors, including the institutional ones, to put money in stocks. Uncertain economic outlook may be another reason as to why fresh investments are not coming in.
That compelled investors to focus on short-term bets, with their confidence in the market almost exhausted.
Two other indices also ended lower. The DS30 index, which consists of blue-chip companies, shed 7.10 points to 2,137, and the DSES index, which represents Shariah-based companies, fell 2.98 points to 1,369.
Turnover, a crucial indicator of the market, however, stood at Tk 7 billion, a 3.42 per cent down from the previous day.
Investors were mostly active in the general insurance sector, which captured 30 per cent of the day's total turnover, followed by food & allied (15 per cent) and miscellaneous (7 per cent).
Most of the traded stocks saw price erosion. Out of 329 issues traded, 109 closed lower, 53 higher and 167 issues remained unchanged on the DSE trading floor.
Small-cap Fu-Wang Food kept its dominance in the turnover chart with shares worth Tk 568 million changing hands, followed by Sea Pearl Beach Resorts, Pioneer Insurance, Eastern Housing and Continental Insurance.
Paramount Insurance was the day's top gainer, posting a 9.81 per cent rise while Khan Brothers PP Woven Bag Industries was the worst loser, shedding 8.46 per cent.
Most of the sectors suffered losses with the travel & leisure experiencing the highest correction of 3.60 per cent as the sector heavyweight Sea Pearl Beach plunged 6.33 per cent.
It was followed by the IT sector with 1.70 per cent correction, followed by the services & real estate sector with 1.50 per cent.
On the other hand, general insurance, mutual funds and life insurance posted moderate gains.
The Chittagong Stock Exchange (CSE) ended lower, with the CSE All Share Price Index (CASPI) losing 15 points to settle at 18,652 and the Selective Categories Index (CSCX) shedding 8 points to close at 11,151.
Of the issues traded, 59 declined, 45 advanced and 64 issues remained unchanged on the CSE.
The port city's bourse traded 1.87 million shares and mutual fund units with a turnover volume of Tk 85 million.
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