Dhaka stocks plunged more than three per cent Tuesday after two consecutive days of heavy gains amid profit taking and signs that market volatility remains a cause of concern, dealers said.
The benchmark DSE General Index (DGEN) slipped 3.38 per cent or 216.24 points to end at 6,173.39 as investors booked profit, resulting in an across-the-board price correction in major sectors.
The broader DSE All Shares Price Index (DSI) ended at 5,119.72, shedding 3.32 per cent or 175.88 points. Blue chips making up the DSE-20 index plummeted 5.26 per cent or 227.19 points to 4,094.58.
The market gained 130 points in the opening ten minutes but declined steadily throughout the session on profit taking in all sectors except the non-banking financials which gained 0.86 per cent.
"After major spikes in the previous two sessions, it was expected that market will see some corrections in trading," said a fund manager, on condition of anonymity.
He said investors were very cautious, reflecting the sweet-sour experiences of the recent past. "It shows volatility is far from over and remains a major concern".
Given the jumpy mood of the investors, many traders opted for profit booking rather than hanging on for more profit, which led to the fall, he added.
"Profit taking by investors was the main reason behind the decline and it was normal price correction," said Ahmad Rashid Lali, managing director of the Rashid Investment Services.
He said turnover, which marked 67 per cent growth on the previous session, was the only positive element in Tuesday's trading, indicating broader participation in the market.
Total turnover stood at Tk 9.63 billion, still three and a half times lower than the record set on December 5 last year. Out of 252 issues traded on the day, only 28 issues advanced and 224 declined.
National Bank led the turnover list with shares worth Tk 684.20 million changing hands. It was followed by Peoples Leasing, Beximco Limited, Bay Leasing, Union Capital, Southeast Bank, International Leasing, Grameenphone, Prime Finance and UCBL.
A total of 80.49 million shares changed hands against 52.95 million on Sunday, the previous session. The number of trade deals also increased to 171,487, which was 93,814 a session back.
Market capitalisation stood at Tk 2,785.24 billion (US$39.22 billion) - still $12 billion less than the historic high set on December 5, 2010. The market cap was Tk 2871.49 billion in the previous session.
Major sectors including banks, telecommunications, pharmaceuticals and fuel and power lost 4.29 per cent, 4.42 per cent, 3.46 per cent and 4.75 per cent respectively.
Other sectors such as ceramics, mutual funds, cement and tannery lost 8.21 per cent, 6.08 per cent, 3.98 per cent and 1.01 per cent.
The day's top losers were Southeast Bank, City General Insurance, RAK Ceramics, Keya Detergent, Meghna Petroleum, Malek Spinning, Prime Bank, National Bank, All Textile and Rahima Food.
Prime Finance and Investment Ltd was the highest gainer posting a rise of 8.37 per cent. It was followed by First Lease Finance and Investment Ltd, ACI Limited, Union Capital, Uttara Finance, IDLC Finance, UCBL, Eastern Lubricant United Leasing and Bay Leasing.
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