Stocks end in the red again

The stock market returned to its bearish trend yesterday on the back of a crisis of investor confidence.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell 70 points, or 0.99 percent, to 7,005.

Market analysts say investors were scared by last week’s continued decline, so they sold stocks.

While making a profit is a common phenomenon in the stock market, the recent decline has been steep and continuous, so it scared investors, a commercial banker said.

Investors should be careful in this situation because a wrong decision here could hurt their investment, he said. If investors invest in good stocks, they have no reason to panic, the investment banker added.

Turnover, a key indicator of the stock market, rose from Tk 1,310 crore to 1,471 crore.

Dhaka stocks moved back into the red amid volatility after a single-session hiatus as investors tended to adopt a cautious stance and posted some quick gains, International Leasing Securities Limited said in its daily market review.

After last session’s upward movement, the market started positively, but the shaky sell-off by investors in key sectors to prevent further erosion of their portfolios has caused the benchmark index to lose 71 points, he said.

Meanwhile, some investors continued to restructure their portfolios to include fundamentally healthy stocks based on year-end earnings and dividend statements and quarter-end company information.

On the DSE, 57 stocks rose, 292 fell and 26 remained unchanged.

Aramit Cement Limited topped the list of winners with an increase of 9.82 percent, followed by Beach Hatchery Limited, Beximco Ltd, Zeal Bangla Sugar Mills Limited and BSRM Ltd.

Shares of Beximco Ltd were the most traded, worth 342 crore Tk, followed by Orion Pharma Limited, Delta Life Insurance Company Limited, NRB Commercial Bank Limited and Genex Infosys Limited.

FAS Finance and Investment Limited lost the most, down 10.6 percent, followed by Bangladesh Building Systems Limited, Active Fine Chemicals Limited, Aziz Pipes limited and Deshbandhu Polymer Limited.

With the fall of Grameenphone Limited, Square Pharmaceuticals Limited, Robi Axiata Limited, Walton and LafargeHolcim Bangladesh Limited, the benchmark index of the DSE fell by 38 points, according to amarstock.com.

Among the key sectors, ceramics and tanneries saw price increases, while services and real estate, cement and textiles faced correction, according to UCB Stock Brokerage Limited’s daily market overview.

The Chattogram stock also fell yesterday. The CASPI, the key index of the Chittagong Stock Exchange (CSE), fell 122 points, or 0.59 percent, to 20,570.

Of the 288 stocks that traded, 62 rose, 205 fell and 21 remained unchanged.