Stocks witnessed a marginal correction on Tuesday, snapping a four-day winning streak, thanks to the profit booking by some investors on financial stocks.
DSEX, the key index of the Dhaka Stock Exchange (DSE), went down by 23.95 points or 0.46 per cent to settle at 5,123, after gaining nearly 98 points in the past four straight sessions.
Two other indices also edged lower. The DS30 index, comprising blue chips, lost 7.16 points to finish at 1,806 and the DSE Shariah Index fell 6.97 points to close at 1,185.
Market analysts said many investors tried to book profits as stocks of many companies have seen a rise by 10-15 per cent in the last four trading days.
Most banking stocks dropped further, fuelled by apprehensions of a reduction of profits of lenders centering a Bangladesh Bank decision directing them to keep aside extra provisioning, said a merchant banker.
Among the 30 listed banks, stocks prices of 22 fell, three saw a rise while five remained unchanged. The banking sector also lost 1.0 per cent market capitalisation.
According to International Leasing Securities, the cautious investors liquidated their investment, particularly in banking and financial institution sectors as the central bank directed to keep an extra 1.0 per cent in provisioning than what they now maintain for their unclassified loans.
The banking sector tumbled driven by concerns over additional provision requirement which exacerbated the plunging further, commented EBL Securities.
However, turnover remained in a satisfactory level as lower return in the money market and growing confidence of investors in the market is expected to generate a higher turnover in the days ahead, said the stockbroker.
Turnover, a crucial indicator of the market, remained the almost same and amounted to Tk 9.72 billion which was Tk 9.79 billion in the previous day.
Top negative index contributors of the market were Marico, Renata, Beximco Pharma, Brac Bank and Square Pharma, according to data of amarstock.com, a stock market data analyst.
Among the major sectors, pharmaceuticals posted the highest lost of 1.40 per cent, followed by financial institutions with 1.10 per cent, banking with 1.0 per cent and power 0.20 per cent.
On the other hand, engineering saw the highest rise, gaining 3.90 per cent riding on Walton, followed by mutual fund 2.70 per cent, telecom 2.0 per cent and food 0.60 per cent.
The Chittagong Stock Exchange (CSE) also ended lower with its All Shares Price Index (CASPI)-losing 62 points to close at 14,723 while the Selective Categories Index - CSCX shedding 36 points to close at 8,869.
The port city bourse traded 15.11 million shares and mutual fund units with turnover value of nearly Tk 444 million.
