Stocks fall for sixth day straight

The benchmark index of the Dhaka Stock Exchange (DSE) dropped again for the sixth consecutive day yesterday amid low investor participation.

The DSEX, the benchmark index of the country's premier bourse, declined 0.38 percent from the previous trading session to settle at 6,258 points.

Likewise, the DSES, which represents shariah-based companies, dipped by 0.54 percent to close the day at 1,361 points.

On the other hand, the DS30, an index comprising blue-chip stocks, rose 0.09 percent to 2,131 points.

A top official of a brokerage firm said the stock market is facing a challenging situation as some large marginable companies' shares fell massively, many merchant banks and brokers had to execute forced selling.

When marginable share prices drop massively, then the margin loan provider can sell-off shares to secure their margin loans.

But due to the forced selling, the index is returning to the red, he said.

On top of that, institutional investors are still on the sidelines. As a result, the stock market is not getting any support, the official added.

The turnover, an indicator of the volume of shares traded, fell 11 percent to stand at Tk 818 crore at the end of the day. It was lowest turnover in the last one month.

Esquire Knit Manufacturing was the top gainer, rising 9.78 percent.

Meanwhile, Monno Fabrics soared 9 percent, AFC Agro Biotech Ltd increased 8 percent, EBL First Mutual Fund advanced 6.5 percent and BD Finance grew 6.2 percent.

Bangladesh Monospool Paper Manufacturing saw the biggest slide of the day with 31 percent while Paper Processing and Packaging dropped 21 percent.

Similarly, Safko Spinning Mills fell 10 percent, Khulna Printing and Packaging edged down 9 percent and Central Pharmaceuticals decreased 8 percent.

From the major sectors, insurance dropped massively with a fall of 1.6 percent followed by engineering with a decrease of 1.4 percent and telecom with a decline of 1 percent.

The Chittagong Stock Exchange (CSE) saw the same trend as the Caspi, the broad index of the port city bourse, shed 0.53 percent to close at 17,989 points.