Stocks extend losses amid confidence crisis

Business Report :
Stocks extended the losing streak for the second straight session on Monday as cautious investors opted for booking profit on sector specific shares amid a confidence crisis among investors.

However, the junk stocks topped the gainers’ list as investors showed buying interest anticipating short-term gain.
The market remained volatile, with investors being active on both sides of the trading fence, while sellers dominated the trading floor at closing.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), finally fell by 11.93 points to settle at 6,331.

The DS30 Index, which consists of blue-chip companies, also fell 0.42 points to 2,191 and the DSES index, which represents Shariah-based companies, shed 2.46 points to 1,374.
Profit-booking sell pressure exerted by cautious investors dominated the market amid the absence of a major market trigger, while a portion of investors continued their chase for rumor-based junk stocks in anticipation of quick gains, said EBL Securities. The sluggish market participation after the Eid holiday has somewhat weakened the strength of the upward trend in the market that induced cautious investors to secure their unrealised profits from particular large-cap issues along with some recently rallied scrips.

“This is creating an opportunity for the junk stocks to dominate the trading board,” said the stockbroker.
Investors’ participation in the market, however, rose 32 per cent to Tk 6.80 billion as most of the investors returned to Dhaka after celebrating Eid festival.

However, the majority of the traded issues saw price erosion. Of the issues traded, 146 declined, 50 advanced and 175 remained unchanged on the DSE trading floor.
Low-cap companies dominated the turnover chart where Fu-Wang Food was the most traded stock with shares worth Tk 562 million changing hands, closely followed by Sea Pearl Beach Resorts, Rupali Life Insurance, JMI Hospital Requisite and Alif Manufacturing. The port city bourse – the Chittagong Stock Exchange – (CSE) also closed in the red with CSE All Share Price Index – CASPI – losing 29 points to stand at 18,705.
Of the issues traded, 94 declined, 42 advanced and 70 remained unchanged with Tk 118 million in turnover.