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The prime index of the domestic stock market plunged yesterday as investors entered a selling spree in the face of rising coronavirus infection rates.
Investors are quite shaky now as the number of Covid-linked deaths is growing, according to a stockbroker.
“If the number continues to rise, then the government may reinstate strict measures on public movement to prevent further loss of life,” he said.
“But these measures make it tough for companies to carry out their economic activities and so, investors are frightened of the potential outcome,” he added.
The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), plummeted 65 points, or 0.93 per cent, to 6,926 yesterday.
At least 12,183 new Covid-19 infections were recorded and 34 people died from the virus in the 24 hours till 8:00am on Sunday, said a press release issued by the Directorate General of Health Services.
The positivity rate of samples collected that day stood at 28.33 per cent while the total positivity rate is currently 14.36 per cent.
“So considering this situation, investors entered a selling spree,” the stockbroker said.
At the DSE, 72 stocks advanced, 264 fell and 44 remained the same.
Turnover, an important indicator of the market, dropped 8 per cent to Tk 1,215 crore at the Dhaka bourse.
Among the most highly traded stocks, Union Bank topped the list with trade worth Tk 90 crore followed by Beximco Ltd, Bangladesh Shipping Corporation, National Polymer and Queen South Textiles.
BD Thai Food topped the gainers list, soaring 10 per cent, followed by Union Insurance, National Polymer, Bangladesh Building Systems, and BD Lamps.
“Newly listed companies are finding spots on the top gainers list almost every day as investors rush to get these,” a merchant banker said.
However, Union Bank is the only exception due to the huge number of its shares available in the market.
The fourth generation bank raised a fund of Tk 428 crore by issuing 42.80 crore ordinary shares, which dropped around 1 per cent to be valued at Tk 13.20 each as of yesterday.
National Feed Mills slipped the most, losing 8.7 per cent, followed by National Life Insurance, Fortune Shoes, Meghna Pet Industries and Safko Spinning.
The stocks plunged as soon as the trading session began as risk-averse investors were in a selling mood amid fears of further price erosions, International Leasing Securities said in its daily market review.
Among major sectors, only jute achieved a slight price appreciation while the tannery, life insurance and ceramic sectors witnessed the highest price correction.
Investor activity was mostly concentrated on the engineering (13.9 per cent), pharmaceuticals (12.4 per cent) and textile (12.2 per cent) sectors, it added.
The price depreciation of Beximco Ltd, Investment Corporation of Bangladesh, Robi Axiata, and British American Tobacco collectively brought the DSEX down by 25 points, according to amarstock.com, a stock market related data provider.
The Chittagong Stock Exchange (CSE) also dropped yesterday. The Caspi, the main index of the port city bourse, fell 190 points, or 0.93 per cent, to 20,298.
Among 305 traded stocks, 54 rose, 228 fell and 23 remained unchanged.
(TDS)
