Stocks witnessed yet another big fall on Sunday, with the key index of the prime bourse falling below 6,800-mark, as worried investors continued to dump their holdings to avoid further erosion in their investments.
DSEX, the prime index of Dhaka Stock Exchange (DSE), slid 78.19 points or 0.82 per cent to settle at 6,773, which is the lowest in nearly four months since August 19 of this year.
The core index eroded more than 318 points in just six trading days while the index shed 594 points since reaching its recent peak at 7,367 on October 10 this year.
Turnover, a crucial indicator of the market, also fell to a fresh seven months low to Tk 8.37 billion on Sunday, in a further decline by 1.41 per cent over the previous day's tally of Tk 8.49 billion.
It was the lowest single-day turnover since April 27 this year, when turnover totaled recorded Tk 8.40 billion.
Analysts said the market remained under sale pressure as investors continued to cash in on stocks while institutional investors remained on the sidelines amid growing tension over a new coronavirus variant.
"The market is falling as panic gripped the investors that the market would fall further amid growing concern over a new coronavirus variant," according to an analyst at a leading brokerage firm.
He noted that overall downward pressure intensified as new variant virus worries further hit investors' confidence.
This fear is not just restricted to Bangladesh's bourse, stocks around the world also plunged, after evidence of a new coronavirus variant in South Africa prompted another round of travel restrictions and reignited concerns about the economic toll imposed by the pandemic, he added.
The National Technical Advisory Committee (NTAC) on Covid-19 Sunday recommended banning travellers from the countries, where new coronavirus variant Omicron has been detected.
"Growing concern over the new coronavirus variant is creating investors shaky in making investment in the sector-wise stocks," commented International Leasing Securities.
The stockbroker noted that the increasing inflation rate and tightening liquidity in the money market gave more panic in markets which turned them to stay in the selling mood.
According to EBL Securities, the stock market tumbled for the sixth consecutive session as investors fear about the adverse impact of the new coronavirus variant on the already bearish market.
A tussle between the Bangladesh Bank (BB) and the Bangladesh Securities and Exchange Commission (BSEC) over some policy matters related to the stock market also eroded investor confidence, said a leading broker.
Two other indices also ended sharply lower with the DSE 30 Index, comprising blue chips, losing 26.69 points to finish at 2,576 and the DSE Shariah Index (DSES) plunged 13.05 points to close at 1,429.
Top negative index contributors were Beximco, Beximco Pharma, ICB, United Power and Grameenphone. These five stocks jointly contributed over 30 point fall of DSEX, according to amarstock.com.
General insurance lost the most of 2.10 per cent, followed by financial institutions with 1.90 per cent, power 1.0 per cent, banking 0.90 per cent, textile 0.80 per cent, pharma 0.70 per cent and food 0.20 per cent.
More than 78 per cent traded issues lost their price, as out of 372 issues traded, 291 declined, 66 advanced and 15 remained unchanged on the DSE trading floor.
Beximco was the most traded stock with shares worth Tk 917 million changing hands, followed by ONE Bank (Tk 571 million), IFIC Bank (Tk 464 million), Paramount Textile (Tk 435 million) and First Security Islami Bank (218 million).
The newly listed Sena Kalyan Insurance topped the gainer's list, gaining 9.78 per cent while Tosrifa Industries was the day's worst loser, losing 9.80 per cent.
The Chittagong Stock Exchange (CSE) also ended sharply lower with the CSE All Share Price Index - CASPI -plunging 220 points to settle at 19,838 and the Selective Categories Index - CSCX-- shedding 133 points to close at 11,927.
Of the issues traded, 192 declined, 53 advanced and 21 remained unchanged on the CSE.
The port-city bourse traded 14.14 million shares and mutual fund units with a turnover value of Tk 391 million.
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