Stocks slide in volatile week amid earnings disclosures
Stocks came across high volatility last week amid macroeconomic uncertainty and corporate earnings disclosures, and the last three straight positive sessions failed to fully recover what the indices had lost on Sunday and Monday. DSEX, the broad based index of the Dhaka Stock Exchange (DSE), closed at 6,378 on Thursday, which was 0.2% lower than that a week ago. Meanwhile, the blue chip index DS30 closed 0.5% lower. In continuation to the previous week s selloff, the key index fell by 85 points in the first two sessions of the week. But on Tuesday, the market began to recover as soon as investors opted to take some positions in their preferred stocks at lucrative prices, according to the weekly market commentary of EBL Securities. Investors were optimistic regarding a quick resolution of the issue related to purchasing stocks before cheque encashment, it observed the mindset of investors. Following some misuses, the regulator earlier this month ordered not to let any investor buy securities until their cheques issued to respective brokers are encashed. This eroded some false or leveraged purchasing power in the market, while many interpreted it as the regulator s caution against soaring prices of trendy stocks. On the other hand, a portion of investors are still concerned regarding the gloomy earnings forecasts of the listed companies influenced by the ongoing macroeconomic adversities, as well as the majority of scrips being stuck at the floor price, said EBL Securities. Investors caution regarding the market direction reduced trading participation last week and the average daily turnover in the DSE came down to Tk717 crore from Tk1,160 crore in the previous week. Investors were mostly active in pharmaceuticals, miscellaneous, and engineering sectors as the three sectors together contributed to over half of the week s turnover. On the sectoral front, travel gained the highest 13.7%, while the jute sector faced the highest correction of 7% over the week.