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The Financial Express

Stocks collapse at opening amid deepening worries

| Updated: April 09, 2021 17:19:12


FE Photo/Files FE Photo/Files

Stocks tumbled at opening on Sunday as panic gripped investors fearing further fall of share prices riding on the news of a countrywide lockdown to slow the spread of the deadly coronavirus.

The market opened on a steep fall, and DSEX, the prime index of the Dhaka Stock Exchange (DSE), eroded by 118.23 points, or 2.24 per cent, to stand at 5,152 points within the first 30 minutes of trading.

Due to the deteriorating coronavirus situation in the country, the government imposed a seven-day lockdown from tomorrow (Monday).

Market analysts said the number of Covid-19 cases continues to rise alarmingly every day in the country and the situation is deteriorating fast which is taking a heavy toll on the struggling market.

Share trading will continue as usual at any situation, including lockdown, if banking activities remain operational, the securities regulator said.

Deeping worries of the investors have turned their focus on the assessment of an adverse economic impact, said a leading broker.

The stockbroker noted that despite the stock market regulator’s assurance investor concerns over the market have acted as the primary trigger for the big fall of indices.

Two other indices also saw a sharp decline till then with DS30 index, comprising blue chips, losing 54.33 points to reach 1,928 points and Shariah Index (DSES) plunging 27 points to stand 1,175 points.

Turnover, another important indicator of the market, stood at Tk 785 million within the first 30 minutes of trading.

Of the issues traded till then, 207 declined, only 11 advanced and 25 issues remained unchanged on the DSE trading floor.

Beximco was the most traded stocks till 10:30am with shares worth Tk 148 million changing hands, followed by Desh General Insurance, Robi, Beximco Pharma and Provati Insurance.

Chittagong Stock Exchange (CSE) also saw a steep decline at opening with CSE All Share Price Index - CASPI - losing 254 points to stand at 15,001.

Of the issues traded, 59 declined, 5 gained and 3 remained unchanged with Tk 38 million in turnover.

 

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