Stocks ended sharply lower on Sunday, after a single-day break, as the risk-averse investors dumped their holdings amid fears over impact of the new coronavirus strain Omicron.
In a worrying development, Bangladesh on Saturday recorded the first cases of the new coronavirus strain that was first found in South Africa in early November.
The market was on a positive trend at opening but the rest of the session went down steadily amid sale pressure on major sector stocks.
Finally, DSEX, the prime index of Dhaka Stock Exchange (DSE), slid 64.38 points or 0.92 per cent to close at 6,920, after gaining more than 32 points in the previous session.
Market analysts said the shaky investors were engaged in booking quick profits on large-cap stocks, taking the market into deep red territory.
Heavy sell pressure was observed in the large-cap stocks such as Beximco, Beximco Pharma, Power Grid, ONE Bank and BRAC Bank, according to a merchant banker.
These five large-cap stocks accounted for more than 31 points fall of DSE key index, according to amarstock.com, a market data analyst.
The finance ministry held a coordination meeting last week but failed to find out a way to resolve some disputes relating to the capital market which also upset the investors, said a leading broker.
Despite the market fall, low-paid up companies' share continued to surge as the stock market regulator ordered 64 low-paid-up listed firms to increase their paid-up capital.
The stock market regulator asked them to place their plan to increase paid-up capital within a month and the companies have to increase their paid-up capital at least to Tk 300 million by June next year.
Investors trimmed their positions on large-cap equities since bargain hunters are seeking opportunities in small-cap stocks, commented EBL Securities.
Despite the market plunge, stocks of low-cap companies saw an upsurge in prices after the securities regulator directed them to comply with the required Tk 300 million in paid-up capital within a specified deadline, said the stockbroker.
The market might be a bit sluggish ahead due to forthcoming initial public offering (IPO) subscriptions while the maiden case of omicron infection in the country is adding worries on the trading bourse, it added.
Selling pressure in the large-cap shares of financial institutions, life insurance, general insurance, and textile and banking sectors pulled the market down, according to International Leasing Securities.
However, investors' enthusiasm was focused in the small-cap shares like jute, paper & printing and tannery with remarkable price surge.
Two other indices also ended lower. The DSE 30 Index, comprising blue chips, plunged 28.10 points to finish at 2,604 and the DSE Shariah Index (DSES) shed 8.05 points to close at 1,467.
Turnover, a crucial indicator of the market, stood at Tk 11.48 billion, which was 10 per cent higher than the previous day's tally of Tk 10.43 billion.
Among the major sectors, financial institutions saw the highest loss of 1.70 per cent, followed by banking with 1.10 per cent, pharma 0.70 per cent, and engineering 0.40 per cent.
Losers took a strong lead over the gainers, as out of 376 issues traded, 242 declined, 99 advanced and 35 remained unchanged on the DSE trading floor.
ONE Bank, which lost 9.84 per cent, was the most traded stock with shares worth Tk 884 million changing hands, followed by Beximco, Saif Powertec, Sonali Papers and Fortune Shoes.
The Chittagong Stock Exchange (CSE) also ended sharply lower the CSE All Share Price Index - CASPI -shedding 196 points to settle at 20,265 and the Selective Categories Index - CSCX-- losing 118 points to close at 12,176.
Of the issues traded, 199 declined, 84 advanced and 14 remained unchanged on the CSE.
The port city bourse traded 14.56 million shares and mutual fund units with a turnover value of Tk 430 million.
© 2024 - All Rights with The Financial Express
