The Financial Express

Stocks open sharply lower

Stocks open sharply lower

Stocks opened sharply lower on Sunday as risk-averse investors dumped their holdings following the strict lockdown news ahead and withdrawal of floor price restriction for 66 issues.

The market fell sharply as soon as the market opened, and the DSEX, the prime index of the Dhaka Stock Exchange (DSE), fell more than 73 points or 1.40 per cent to stand at 5,180 points within the first 30 minutes of trading.

Market analysts said the withdrawal of floor price restriction for 66 listed companies coupled with deepening worries over the soaring coronavirus cases and deaths in the country took a heavy toll on the struggling market.

The Bangladesh Securities and Exchange Commission (BSEC) last week withdrew the floor price for 66 listed companies set a year ago when the market was in free fall amid the first wave of the Covid-19 pandemic.

However, the stock market regulator on Saturday lowered the circuit breaker limit to 2.0 per cent from the existing 10 per cent for 66 companies apparently to prevent the price fall.

Two other indices also saw sharp decline till then with the DS30 index, comprising blue chips, lost 32.11 points to reach at 1,958 points and the Shariah Index (DSES) plunging 20.13 points to stand at 1,177 points till then.

Turnover, another important indicator of the market, stood at Tk 1.80 billion within the first 30 minutes of trading when the report was filed at 10:30am.

Of the issues traded till then, 200 declined, 50 advanced and 47 remained unchanged on the DSE trading floor till then.

Beximco was the most traded stocks till then with its shares worth Tk 142 million changing hands, followed by Robi, BD Finance, Purabi General Insurance and Saif Powertec.

The port city bourse, the Chittagong Stock Exchange (CSE), also fell sharply at opening with its CSE All Share Price Index (CASPI) losing 172 points to stand at 15,058, also at 10:30am.

Of the issues traded till then 74 declined, 16 gained and 14 remained unchanged with Tk 46 million in turnover.


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