Stocks return to red amid political instability

Stocks returned to the red last week as investors remained skittish over the expected negative impact of political instability on the first quarterly earnings of listed companies.

DSEX, the benchmark general index of Dhaka Stock Exchange, declined 37.16 points or 0.82 percent week-on-week, before finishing at 4,472.14 on the last trading day.

The week continued the lacklustre performance of the capital market, IDLC Investments said in its analysis.

As the first quarter of this year was largely dominated by political turmoil, investors' expectations for the Q1 earnings turned negative along with apprehension of a tepid overall performance of the economy, it said.

Some investors tried to reverse the downward trend by taking positions in the large caps. But enthusiasm was short-lived as profit booking pressure wiped out gains, the merchant bank added.

LankaBangla Securities said the week started with a positive momentum on hope of improvement in the political arena.

But the index dragged sharply in the week's last couple of days after announcement of renewed countrywide strikes, the stockbroker said. However, it said some stocks still gave returns to the investors with cautious trading in the capital market.