The Financial Express

Weekly market review: Corona panic grips investors, losing streak extended

| Updated: April 09, 2021 17:19:13

- File photo - File photo

Dhaka bourse passed the week with a moderate loss both in broad index and turnover as investors were panicked over the surge in covid infections and deaths.

Amid selling pressure and cautious stance adopted by many investors, Dhaka Stock Exchange (DSE) observed volatility throughout the week and extended the losing streak for third consecutive week.

At the end of the week, the DSE broad index DSEX settled at 5,270.53 with a loss of 1.06 per cent or 56.69 points.

The market operators said stocks from all the major sectors experienced selling pressure and that's why the DSEX went down below 5,300- point mark, the lowest one since 27 December 2020.

In last week, the shariah based index DSES declined 1.24 per cent or 15.15 points to close at 1202.54 points.

The DS30 index comprising blue chip securities declined 1.86 per cent or 37.60 points to close at 1983.30 points.

In last week, only three sectors of listed securities witnessed price appreciation on the premier bourse DSE. The sectors are mutual fund, general insurance and miscellaneous.

Of 371 issues traded in last week, 91 advanced, 123 declined and 157 remained unchanged.

Following the price corrections witnessed by the listed securities, the market capitalisation of the DSE declined 1.02 per cent to close at Tk 4.59 trillion on Thursday.

According to the market operators, following the recentl volatility the share prices of around 100 companies have come down to their floor price levels.

"Such price erosions have tempted many optimistic investors to take positions on lucrative securities," said a stock broker.

He also said the regulatory decision regarding deferring the directive on margin loan interest cap have also inspired those investors to take position in the market.

In last week, the premier bourse DSE featured a daily average turnover of 5.07 billion which was 15.71 per cent less than that of the previous week

According to a market review of International Leasing Securities, the DSEX extended the losing streak for the three weeks in a row as the investors went for panic sale amid alarming rise of Covid-19 infections and deaths in recent days.

"The risk-averse investors opted for liquidating their securities to escape further losses on their portfolios as the investors are expecting an adverse impact on the economy and earnings of the listed companies," said the International Leasing Securities.

Of the sectors which witnessed price appreciation, general insurance advanced 3.5 per cent, mutual fund 2.4 per cent and miscellaneous 0.7 per cent.

Of the sectors which witnessed price correction, bank declined 1.0 per cent, financial institutions 1.7 per cent, fuel & power 1.1 per cent, pharmaceuticals & chemicals 1.3 per cent and telecommunication 2.2 per cent.

Investors' participation was concentrated mostly on miscellaneous sector which grabbed 17 per cent of the market turnover followed by pharmaceuticals & chemicals 15.1 per cent and bank 12 per cent.

CAPM IBBL Islamic Mutual Fund was the number one gainer in last week with a rise 28.36 per cent to close at 17.20 per unit.

On the other hand, IFIC Bank was the worst loser after declining 15.97 per cent to close at Tk 10 each on the DSE.

According to another market review of EBL Securities, investors adopted a cautious stance throughout the week as covid-19 cases and the number of deaths has been on the rise.

During this week, the indices of the Chittagong Stock Exchange (CSE) also declined marginally.

Three indices namely CSE30, CSCX and CASPI lost 170.2 points, 101.9 points and 168.1 points respectively over last week.

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