Stocks slip back into red amid selling frenzy

Stocks returned to the red yesterday, as bleak political outlook and profit-booking forced weary investors to sell off shares.

DSEX, the benchmark general index of Dhaka Stock Exchange, dropped 63.57 points, or 1.36 percent, to finish the day at 4,585.72.

Massive selling pressure and impatience roiled the market, after Tuesday's small gain, IDLC Investments said in its market analysis.

After a single-day pause, the nationwide strike resumed, making investors nervous about the market outlook, said LankaBangla Securities, a leading stockbroker.

However, imminent annual declarations from some manufacturing stocks enticed investors to take positions, it added.

Among major news, inflation rose to 6.14 percent in February from 6.04 percent in January after decreasing continuously for seven months.

Banking stocks took the biggest hit yesterday, as the sector slid 3 percent, followed by the engineering sector that fell 2 percent.

The food and allied sector however managed to move forward 2.3 percent.

Amid the selling frenzy, the day's turnover rose 21.6 percent to Tk 310.28 crore from the previous the day.

A total of 0.95 lakh trades were executed, with 6.21 crore shares and mutual fund units changing hands on the premier bourse.

Losers beat gainers, as 234 declined, 43 advanced and 31 remained unchanged on the DSE.

Shasha Denims dominated the turnover chart with 61.91 lakh shares worth Tk 24.06 crore changing hands, followed by Shahjibazar Power Company, Ifad Autos, Lafarge Surma Cement, and ACI.

Northern Jute Manufacturing was the day's best performer, advancing 9.17 percent, while Bank Asia was the worst loser, slumping 13.95 percent.

Chittagong stocks also fell yesterday with the bourse's selective category index, CSCX, shedding 105.07 points to close at 8,509.08 points.

Losers beat gainers 174 to 30, with 30 securities remaining unchanged on the port city bourse that traded 75.88 lakh shares and mutual fund units worth Tk 28.28 crore in turnover.