Selling pressure keeps stocks in the red

Stocks plunged for a second day as the selling pressure from investors pushed down the market yesterday.
The benchmark general index of Dhaka Stock Exchange (DGEN) slumped 39 points, or 0.61 percent, to 6,346 points, while the selective categories index of Chittagong Stock Exchange lost 75 points, or 0.65 percent, to close at 11,465.
“It is a rational behaviour of the market as the index did not drop unusually,” said Mahmood Osman Imam, a teacher of finance at Dhaka University.
Imam, also a member of the index development committee of Dhaka Stock Exchange (DSE), said the investors adopted a wait-and-see policy, and expected government actions against the manipulators.
If the commission does not approve the Bangladesh Fund, the market will fall sharply, he predicted.
The day started with an upbeat trend in the stockmarket but lost points at the closing hours as investors' selling pressures increased.
Most of the major sectors such as banks lost 0.44 percent, non-bank financial institutions 0.79 percent, telecoms 0.53 percent and fuel and power 0.96 percent. The total trade volume also went down yesterday.
Of the total 259 issues traded on the DSE floor, 135 declined, 120 advanced and four remained unchanged. Turnover on the DSE stood at Tk 743 crore, down by Tk 111.5 crore from that of the previous day.
BSRM Steels Ltd topped the turnover list trading 1.91 lakh shares worth Tk 30.23 crore. The other turnover leaders were Malek Spinning Mills, Aftab Automobiles, Beximco, RN Spinning Mills, Bextex, Aims First Mutual Fund, Titas Gas, Active Fine Chemicals, Olympic Industries, Grameenphone, and Fu-Wang Ceramic.
Mercantile Insurance was the biggest gainer of the day, posting a 10.48 percent rise its share prices, while Islami Bank was the worst loser, slumping by 26.33 percent.
However, as per the instruction of the Securities and Exchange Commission the DSE formed four investigation committees to look into the unusual price movement of Legacy Footwear Ltd, Anwar Galvanizing Ltd, Dulamia Cotton Spinning Mills, and Alltex Industries Ltd.