Stocks slip after three-day winning streak
Stocks inched down on Tuesday as bottom hunters opted to book profits after three straight winning sessions.
DSEX, the broad-based index of the Dhaka Stock Exchange (DSE), began the session with an upward movement, reaching a peak of 6,300 points midway through the session.
However, once sellers gained control, the latter half of the session turned bearish, resulting in corrections for most stocks before the closing bell.
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Finally, the DSEX slipped by 0.05% and settled at 6,288.
Among all the stocks, only 56 showed gains, while 108 experienced declines at the DSE on Tuesday.
According to the daily market commentary by EBL Securities, cautious investors' profit booking is what led the stocks into the red territory after an upward momentum from the previous three sessions.
Stockbrokers said investors are deeming political events and forecasts as crucial factors ahead of the national election. Analysis of the macroeconomic situation and corporate performance of the listed firms are still relevant.
"The market witnessed mild volatility as risk-averse investors preferred to partially liquidate their holdings, induced by shaky confidence coupled with the prevailing concerns regarding the market outlook," EBL Securities wrote.
However, optimistic investors continued to seize quick gain opportunities in particular scrips, which they perceived to be traded at a lucrative price level.
Meanwhile, investor participation slightly increased with the DSE total turnover crossing Tk500 crore after nearly three weeks.
On the sectoral front, food, life insurance, and general insurance together contributed to over 40% of the DSE turnover.
Sectors displayed mixed returns, out of which travel, general insurance and IT led the losers, while paper, life insurance and jute sectors' market capitalisation increased the most.
Miracle Industries, Legacy Foot, Jute Spinners, Gemini Seafood, and Aramit Cement were the top five gainers with 4-10% gains on Tuesday.
On the other hand, Khan Brothers PP Woven Bag, CAPM IBBL Mutual Fund, United Insurance, Shyampur Sugar and Sonargaon Textile led the losers.
