Stocks extend losses with major stocks tumbling

Stocks witnessed yet another bearish session on Monday, as shaky investors continued their sell-offs on major sectors issues fearing a further fall in prices.

DSEX, the prime index of the Dhaka Stock Exchange (DSE), went down by 48.65 points, or 1.0 per cent, to settle at 4,809 points -- a seven-week low

Two other indices of the premier bourse also ended lower. Of them,  DS30 index, comprising blue chips, lost 10.10 points to finish at 1,637 and DSE Shariah index shed 2.39 points to close at 1,096.

Market analysts said investors continued their selling frenzy on major sector stocks fearing further fall since the second wave of Covid-19 is likely in winter.

The World Bank’s forecast of a lower GDP growth (1.6 per cent in the current fiscal year) for Bangladesh also prompted investors to sell shares, said a leading broker.

Although the financial indicators are satisfactory considering the pandemic situation, investors’ response on the World Bank’s lower GDP forecast added further woes to the market performance, said the stockbroker.

Turnover, a crucial indicator of the market, fell to a two-month low at Tk 6.94 billion, which is 21 per cent lower than the previous session’s turnover of Tk 8.75 billion.

Losers took a strong lead over gainers on the DSE floor, as out of 354 issues traded, 238 ended lower, 56 closed higher and 60 remained unchanged.

A total of 156,753 trades were executed in the day’s session with a trading of 314.10 million shares and mutual fund units.

The insurance sector continued to dominate the turnover chart with Eastland insurance topping the list with shares worth Tk 230 million changing hands, followed by Sandhani Life Insurance, Beximco, Brac Bank and Continental Insurance.

National Feed Mills was the day’s best performer, posting a gain of 9.70 per cent, while Sonar Bangla Insurance was the worst, losing 9.98 per cent.

The Chittagong Stock Exchange also ended lower with its All Shares Price Index (CASPI) losing 133 points to close at 13,747 while the Selective Categories Index, CSCX, shedding 77 points to close at 8,259.

Of the issues traded on the CSE floor, 184 declined, 48 advanced and 39 remained unchanged.

The port city bourse traded 12.13 million shares and mutual fund units with a turnover value of more than Tk 260 million.

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