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Stocks extend losses amid ongoing virus scare

DSEX sheds 48 points in five straight sessions

FE REPORT | July 20, 2020 12:00:00

Stocks extended the losing streak for the fifth straight session on Sunday as the risk-averse investors continued their sell-offs amid ongoing virus fears and floor price mechanism.

The market started with sell pressure as investors adopted exit mode amid uncertainty over the economic recovery and the downturn continued until end of the session.

DSEX, the key index of the Dhaka Stock Exchange, went down by 18.46 points or 0.45 per cent to settle at 4,050. DSEX lost 48 points in the five straight sessions.

Turnover, another important indicator of the market, remained low and amounted to Tk 2.34 billion on the country's prime bourse, which was 3.54 per cent higher than the previous day's turnover of Tk 2.26 billion.

Market operators said the market has been struggling with a poor participation of investors for long thanks to the regulator-enforced floor price mechanism and no signs of improving the ongoing Covid-19 situation.

The market went through a volatile session as investors remained watchful concerning the impact of Covid-induced uncertainty over the economy, said a merchant banker.

He noted that retail investors also selling shares to pull out money ahead of Eid festival as only nine trading days are left before the Eid vacation.

A leading broker said the investors did not get any enthusiasm for buying shares even at the lowest possible prices under the floor price system coupled with ongoing pandemic.

According to International Leasing Securities, stocks extended the bearish streak for the fifth straight sessions as most of the investors remained cautious amid worsening of Covid-19 situation.

The stockbroker noted that the news that net foreign investment continued a downward trend over the last 14 straight months also tempted the investors to remain aloof from the buying.

Two other indices also ended lower. The DS30 index, comprising blue chips, lost 12.12 points to finish at 1,356 and the DSE Shariah Index shed 6.84 points to close at 938.

The Chittagong Stock Exchange also ended lower with its All Shares Price Index (CASPI)-losing 44 points to close at 11,514 and the Selective Categories Index - CSCX -falling 28 points to finish at 6,979.

Of the issues traded, 30 gained, 49 declined and 82 remained unchanged on the CSE.

The port city bourse traded 3.17 million shares and mutual fund units with turnover value of Tk 68 million.

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