Stocks extend losses amid cautious investor sentiment

Stocks on Sunday extended losing streak for a second consecutive session as risk-averse investors remained cautious amid ongoing earnings announcements and dividend declarations.

The DSEX, the broad index of the Dhaka Stock Exchange (DSE), fell 49.3 points to settle at 5,482, compared with 5,532 points in the previous trading session.

The market opened on a weak note, with selling pressure dominating from the outset.

Although the market made a brief recovery attempt after the initial decline, persistent selling pressure dragged most stocks into negative territory by the end of the session.

Market turnover also declined significantly by 24.9 percent to Tk 540cr from Tk 720cr in the previous session, indicating subdued investor participation.

Among the sectors, Textile stocks accounted for the highest share of turnover at 28.1 percent, followed by General Insurance at 14.9 percent and Pharmaceuticals at 10.3 percent.

Most sectors posted negative returns. Ceramic led the decline with a 2.3 percent correction, followed by IT with 2.1 percent and Mutual Fund with 1.9 percent. In contrast, Jute gained 3.5 percent, Financial Institutions advanced 2.3 percent and Paper rose 0.3 percent.

Of the 395 issues traded on the DSE, 64 advanced, 290 declined and 41 remained unchanged, reflecting broad-based selling pressure.