The stock market nosedived to a four-month low yesterday amid fears of a second wave of the coronavirus pandemic.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), plunged by 94 points, or 1.76 per cent, to 5,278, which is the lowest in about four months.
For all latest news, follow The Daily Star’s Google News channel.
Due to a sudden rise in Covid-19 infections, investors are worried whether the pandemic situation will worsen and slow down the economic recovery, a stock broker said.
“So, they are in a selling mood,” he added.
On March 30, the number of new cases of coronavirus infections stood at 5,042 and there were 4,099 new cases on an average in the last seven days.
To control the pathogen, the government has imposed some restrictions on transportation, and peoples’ movement, which will leave an impact on the businesses again and listed companies will also feel the pinch, according to a merchant banker.
Despite the restrictions, the number of Covid patients may rise because of the callousness of the people, which would hit the economy hard in the long run, he said.
In this situation, the merchant banker recommends that people refrain from selling shares and hold them for a long period.
“If you buy shares of well-performing companies then you will not be a loser,” he added.
Many investors are trying to sell shares thinking the stocks may fall further if the pandemic situation worsens further.
“The index is falling now. The index would jump again if the number of infections drops, as many have the appetite to buy shares,” the merchant banker said.
Turnover, an important indicator of the market, dropped 11.3 per cent to Tk 560 crore.
At the DSE, only 11 stocks rose while 257 dropped and 79 remained unchanged.
Desh General Insurance topped the gainers’ list at its debut when its share price rose by 50 per cent.
As it was its first trading day, the share was allowed to see a price rise of up to 50 per cent instead of the traditional circuit breaker of 10 per cent in a day.
Followed by Desh General Insurance, CAPM IBBL Islamic Mutual Fund, Dacca Dyeing, Meghna Pet Industries and Vanguard AML Rupali Bank Fund also made it to the gainers’ list.
Beximco Limited topped the turnover list with shares worth Tk 89 crore changing hands followed by Beximco Pharmaceuticals, Robi Axiata, LankaBangla Finance and Square Pharmaceuticals.
Jute Spinners shed the most, losing 9.08 per cent followed by Shyampur Sugar, Premier Leasing, Aramit Cement and Taufika Foods and Agro Industries.
The port city bourse also dropped. CASPI, the general index of the Chittagong Stock Exchange, fell 301 points, or 1.93 per cent, to 15,264.
Among 229 traded stocks, 15 rose, 169 fell and 45 remained unchanged.
