Stocks sink on strict lockdown panic

The indices of both the stock exchanges sank on Sunday compared to the previous day as the government announced a fresh strict lockdown to curb the deadly Covid-19 infections, which seriously has spread across the country in the last few days.

Due to the panic over the strict lockdown, DSEX – the benchmark index of the Dhaka Stock Exchange (DSE) – witnessed a major setback of 100 points or 1.64% to stay afloat at 5,993.

On Sunday, the DSE turnover stood at Tk1,740 crore, which was 9% higher compared to the previous trading day.

The DSE market capital on Sunday stood at Tk5,042,520 crore, which was 1.25% lower compared to the previous trading day.  

Following the massive fall, 306 companies' share prices declined, while 54 advanced and 12 remained unchanged.

The port city bourse Chittagong Stock Exchange's main index Caspi also dropped 297 points to settle at 17,359.

The EBL Securities said on its daily market review, "Panic driven sell from the lockdown declaration dampened market sentiment which pushed the benchmark index to tumble below the 6,000-mark after 14 days. On the other hand, investors have been showing immense interest in the textile sector as they hope earnings of apparel exports will rise as the US and the European Union economies rebounded with mass vaccinations."

Despite being aggravated by sell pressure across all the sectors, share price of the textile and life insurance sectors' companies increased and investors got return from those shares.

Following the price hike, eight textile companies secured positions among the top ten gainers' list at the DSE. Out of those companies, Matin Spinning shares saw the highest price hike on Sunday as the company announced earlier to invest Tk186 crore for boosting production to meet the growing demand.

The general insurance sector lost 4.7% price as the investors were selling those shares to book capital gain. That is why, six insurance companies took place in the top ten losers' list at the DSE, while Republic Insurance's share was the worst on Sunday.

The Beximco Limited topped the turnover leader's list with 6% participation of the total turnover, whereas the other market movers were the Renata Limited and the Eastern Bank as investors show the most interest in those shares at the DSE.

Meanwhile, sources at the securities regulator said if the banks remain open, the capital market will also remain open during the lockdown.

The government on Sunday announced a set of restrictions to be imposed during the nationwide lockdown to be enforced from Monday till Thursday 6am.

The Cabinet Division has issued a gazette notification on Sunday signed by Deputy Secretary Md Rezaul Islam, with certain rules and regulations.

Government and non-government offices and institutions will have to provide transports to ensure the attendance of the required number of employees only during this period. 

From Thursday the government will impose a strict lockdown across the country and all kinds of offices and transport except the emergency services will shut down, said sources.