Weakening earnings outlook weighs on stocks

The benchmark index of Dhaka Stock Exchange DSEX lost 31 points or 0.7% to 4,605—its lowest since September 7 this year. The DS30 index, comprising blue chips, shed over 16 point or 1% to 1,734. The DSE Shariah Index, DSES, was down 9 points to 1,100. The Chittagong Stock Exchange Selective Category Index CSCX declined about 62 points to 8,613. Trade volume also moved downward to Tk457 crore, sharply down about 25% compared to Tk605 crore of the last session. Share prices of almost 60% scrips eroded on the DSE as out of 324 issues traded, 191 closed lower, 91 higher while 42 remained unchanged. “Weakening earnings outlook in large cap stocks played a catalytic role in bearish activity at the market,” said an analyst at a leading brokerage firm. Engineering posted the highest losses of 1.8%, led by Singer Bangladesh and Golden Son. Heavyweights telecommunications, banks and pharmaceuticals dropped 0.7%, 0.6% and 0.5% respectively. However, some looses were offset by food and allied, non-banking financial institutions and power, which gained about 1%, 0.7% and 0.3% respectively. Lanka Bangla Securities said stocks had an up-and-down performance as risk appetite wane. “The correction phase of the market continued as string of downbeat earnings update has stifled the market sentiment.” Doreen Power Generation and Systems Limited was the most traded share with a turnover of Tk37.7 crore. Doreen Power topped the turnover list followed by KPCL, MJL Bangladesh, Fortune Shoes and IFAD Autos.