Market participation is likely to stay dull till the economy starts to function in full swing
The stock market failed to extend its previous session gains today as upset investors were reluctant to participate in the market over the coronavirus outbreak and its economic impacts.
DSEX, the prime index of the Dhaka Stock Exchange (DSE), lost eight points, or 0.2 percent, to close the day at 3,977.
The Shariah-based DSES index also slipped two points, or 0.2 percent, to settle at 917, while the blue-chip index DS30 slid 0.03 points, or 0.002 percent, to stand at 1,324.
At the Chittagong Stock Exchange (CSE), the benchmark index Caspi inched down 23 points, or 0.2 percent, to close at 11,250.
The indices displayed volatility on their intraday performance graphs – with the main index taking a sharp fall during the early hours of trade. However, the market then picked up growth, and continued the upward trend, till the end of the session – but then again fell slightly during the last minute.
"The Dhaka bourse has become stagnant, with very low market participation, as investors are reluctant to buy stocks in this current economic situation," stated the Daily Market Review of EBL Securities Ltd.
The government has announced a shut down of all offices and public transportation from March 26 to April 4 in an attempt to flatten the curve of the ongoing coronavirus crisis.
Significant bailout packages are expected from the government for lower income groups, businesses and industries – with the help of donations and lending from development organisations. Market participation is likely to stay dull till the economy starts to function in full swing, added the review.
According to the Daily Market Review of UCB Capital Management Ltd, "The uncertainty looming over the potential adverse impact on Bangladesh's economy has limited the functionality of the market. The fixation of the floor price of each stock has also added to the downfall of trading activities."
"A few of the companies, especially from the banking sector, have already deferred their board meetings for annual declarations. Moreover, major indices on the global market are also taking their toll, leaving investors on exit mode," added the review.
Almost all the sectors posted losses today – with the ceramics sector facing the highest price correction of 1.1 percent. The cement sector registered the highest appreciation of 0.6 percent on the sector return board.
Among the large-cap sectors, banks shed 0.4 percent of their price, the pharmaceuticals sector lost 0.2 percent and the telecom sector and financial institutions remained almost unchanged.
Turnover at the DSE decreased 45 percent to Tk139.5 crore today , from Tk254.3 crore in the previous session.
Meanwhile, turnover at the port city bourse jumped a staggering 1,288 percent from Tk5.9 crore to Tk81.9 crore.
The pharmaceuticals sector contributed the most, 43.4 percent, to the total turnover value, followed by banking stocks adding 14.9 percent and the fuel and power sector adding 14.5 percent on the sector-wise turnover distribution board.
Linde Bangladesh Ltd topped the turnover chart with a turnover value of Tk14.4 crore, closing the day at Tk1,212.7 per share. The stock was followed by Lafarge Holcim Bangladesh Ltd with a turnover value of Tk8.2 crore, closing at Tk36 per share.
Premier Cement Mills Ltd was the best performer on the gainers' table, gaining 5.4 percent and closing at Tk67.9 per share.
Popular Life Insurance Co. Ltd was the worst loser, shedding 8.1 percent and closing at Tk77.2 per share, read the DSE website.
Of the 352 issues traded today , 25 advanced, 85 declined and 242 remained unchanged on the DSE trading floor.