FE Today Logo

Stocks keep losing amid growing virus tension

Only 12 issues gain, 229 remain unchanged

FE REPORT | June 03, 2020 00:00:00

Stocks kept the losing streak on Tuesday amid growing tension over the impacts of Covid-19 pandemic on the lives and livelihoods.

DSEX, the key index of the Dhaka Stock Exchange, went down by 29.91 points or 0.75 per cent to close at 3,969.

The core index eroded 91 points in two straight sessions while added 52 points in the opening session after 66-day closure.

Of the issues traded, 229 remained unchanged while only 12 issues advanced and 53 declined on the DSE trading floor.

The presence of investors is still thin in the trading floor as many investors are yet to back in Dhaka after the prolonged holidays.

"Investors are fearing further economic contraction and lower earnings of the listed companies due to the fallout of Covid-19 crisis which fuelled indices downturn," said EBL Securities, in its regular market analysis.

The stockbroker noted that the current floor price limitation is impeding many investors' willingness of liquidating their portfolios which is causing low turnover in the market.

The recently introduced circuit break annoyed many investors as most of the shares remained non-traded at the floor. A very few buyers came and picked some of the offered shares.

The news that the Bangladesh Bank is likely to allow banks to disburse cash dividend only to the general shareholders before September this year, also failed to attract investors.

Earlier on May 11, the central bank asked all the banks not to disburse any cash dividend before September 30 this year with a view to ensuring adequate cash in the banking system to support the economic rebuilding process amid the deadly virus crisis.

Two other indices also ended lower. The DS30 index, comprising blue chips, fell 16.67 points to finish at 1,330 and the DSE Shariah Index lost 9.75 points to close at 920.

Turnover, a crucial indicator of the market, stood at Tk 1.55 billion on the country's premier bourse, falling 21 per cent over the last session's mark of Tk 1.98 billion.

"Due to floor price mechanism, many investors have failed to sell stocks causing lower turnover," said a stockbroker.

According to International Leasing Securities, shaky investors opted to liquidate their holding of shares from pharma, telecom, power and bank sectors to escape further losses.

The stockbroker said most of the investors are watchful about the forthcoming earnings declaration of listed firms as the companies have not been able to do business in the last two months.

The pharma sectors lost 1.70 per cent, followed by telecom with 1.50 per cent and power 0.40 per cent.

A total number of 20,990 trades were executed in the day's trading session with trading volume of 38.53 million shares and mutual fund units.

The market-cap of the DSE also fell to Tk 3,106 billion, from Tk 3,122 billion in the previous session.

The pharma sector continued to dominate the turnover chart, grabbing 69 per cent of the day's total turnover.

Square Pharma topped the turnover chart with shares worth Tk 164 million changing hands, followed by Grameenphone, BeximcoPharma, Beximco and Indo-Bangla Pharma.

ICB AMCL Sonali Bank 1st Mutual Fund was the day's best performer, posting a gain of 2.63 per cent while Central Pharma was the worst loser, losing 9.65 per cent.

The Chittagong Stock Exchange also ended lower with its All Shares Price Index (CASPI)-losing 80 points to close at 11,261 and the Selective Categories Index - CSCX -shedding 50 points to finish at 6,823.

The port city bourse traded 2.81 million shares and mutual fund units worth Tk 566 million in turnover.

[email protected]

Share if you like