Stocks start week with another round of selloffs
Investment appetite remains subdued as cautious investors are wary of the bleak macroeconomic environment and mounting political tensions ahead of the national election
The early hour momentum on Sunday to continue recovery for the third consecutive day failed, as nervous investors opted for a fresh round of selloff at the second half of the week's first trading session.
DSEX, the broad index of the Dhaka Stock Exchange (DSE), declined by 4.1 points or 0.07% and settled at 6,230.
"The capital bourse of the country started the week on a gloomy note, with dominant selloffs prevalent in the major sectors pushing the indices lower owing to the waning market confidence stemming from the current adversities on the macroeconomic and political fronts," said EBL Securities.
Investment appetite remains subdued as cautious investors are wary of the bleak macroeconomic environment and mounting political tensions ahead of the national election, added the brokerage firm's analysts.
Meanwhile, market turnover rose by 48.3% to nearly Tk550 crore, which was Tk370 crore in the previous session that saw buyers' dominance.
On the sectoral front, engineering stocks contributed the highest 15.6% to the day's total DSE turnover. Life insurance, textile sectors followed with 13.8% and 12.8% turnover contributions, respectively.
Most of the sectors saw negative returns, out of which jute, ceramic, general insurance faced the sharpest falls by 2.5%, 1.1% and 1.09%, respectively.
On the other hand, IT, fuel and power, and engineering sectors inched up with meager 0.3%, 0.2% and a 0.1% capital gain, respectively.
53 scrips advanced, 93 declined and 246 remained unchanged.
Stock market has been spiraling down since the end of July as it faced more selloff than buying appetite, while most of the listed scrips were stuck on the floor price.
DSEX, on 21 November, had hit 6,220 owing to the majority listed firms' struggle to post decent earnings while smart investors were chasing nearly double digit certain returns from short term treasury bills and bonds.
However, several sets of speculative stocks helped the market recover to some extent till Sunday morning.