Dhaka stocks reversed into a decline on Tuesday after a two-day gaining streak as many investors went for selling shares, some to take profits and others to get out of the market.
The turnover of the Dhaka Stock Exchange on the day advanced by around Tk 385.20 crore due to the increased volume of trading after thin trading in the last two days.
The DSE general index, DGEN, lost 216.23 points, or 3.38 per cent, on the day with the turnover standing at Tk 962.95 core.
The index had gained around 810 points on the past two trading days after suffering a massive loss in the past few weeks. The turnovers on the past two days were Tk 577.71 crore and Tk 689.30 crore respectively.
Out of the 252 issues traded on Tuesday only 28 advanced and 224 declined.
Salahuddin Ahmed khan, a Dhaka University finance teacher, termed the declining trend on Tuesday's market as a 'downtrend syndrome'.
'The trend of the market on Tuesday is alarming as it indicates a downtrend syndrome,' Salahuddin told New Age.
'When the investors go for blanket sales of their portfolios for a marginal profit or bearing a minor loss, it may lead the market to another debacle, if continues,' he warned.
Salahuddin said, 'The general investors are yet to get back their confidence in the market.'
'The retail investors also need to shake off the tendency to earn profit from low-profile shares and go for shares with strong fundamentals to keep the market in the black,' he explained.
The general index of the Dhaka bourse that started the day on an upbeat mood had gained 128 points in the first 10 minutes but failed to keep up the momentum as the day advanced. After wavering for about one hour, the index started to fall from 12:00 noon due to a heavy selling pressure of the retail investors.
The pulse of the general investors was jumbled on the day as many investors went for selling off their portfolios to leave the market for good after recovering as much as they could of their losses, while some others bought shares on the hope that the market would rise further.
Harun Jamil, a retail investor who sold out his portfolio, said, 'I don't want to take any more risk as the market has been behaving so erratically in recent times.'
He said, 'In the past two weeks I had lost more than 60 per cent of my investment. As I recovered some of my losses in the last two days' sharp rise, I have decided to sell off all my shares.' 'I am still in loss but I prefer to leave with it,' he added.
The retail investors had gone on rampages on the streets of Motijheel as the DSE general index had lost 1,198 points over the previous two weeks. Waking up to the reality, the government took a number of measurers, including injecting fresh funds, to stabilise the market.
National Bank topped the turnover leaders with shares worth Tk 68.41 crore traded on Tuesday.
Read the original story on the daily New Age
