Dhaka, Bangladesh
Bourses keep losing amid virus tension

Bourses keep losing amid virus tension

Business Desk: Stocks kept their losing streak on Tuesday amid growing tension over the impacts of coronavirus pandemic in the listed companies’ earnings as well as country’s overall economy. DSEX, the key index of the Dhaka Stock Exchange (DSE), went down by 29.91 points or 0.75 per cent to close at 3,969. DSEX eroded 82 points in the consecutive sessions while added 52 points in the opening day after 66-day closure. The presence of investors is still thin in the brokerage houses as many investors are yet to back in Dhaka. The brokerage houses also discourage their clients for rushing in the houses physically and inspire for executing their trade through internet based device and mobile apps due to the ongoing pandemic. The recently introduced circuit break systems annoyed many investors as most of the shares were stuck at the floor. Very few buyers came and picked some of the offered sshares. Of the issues traded, 229 remained unchanged while only 12 issues advanced and 53 declined on the DSE trading floor. Market analysts said growing tension over the impacts of coronavirus (Covid-19) outbreak remained in the investors’ mind as death and the number of new cases continued to rise in Bangladesh. The death toll from the deadly virus has reached to 709 and the number of total infected person stands at 52,445 as of Tuesday (June 2). 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, fell to 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, many investors have failed to sell stocks which have kept the turnover remained low,” said a stockbroker. 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 board with Square Pharma topped the turnover chart with shares worth Tk 164 million changing hands, followed by Grameenphone, Beximco Pharma, 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. Of the issues traded, 10 gained, 30 declined and 88 remained unchanged on the CSE. The port city bourse traded 2.81 million shares and mutual fund units worth Tk 566 million in turnover. Meanwhile, two key regulatory institutions overseeing Bangladesh’s financial services industry and the capital market will work together to remove barriers borne out of lack of coordination, new head of securities market watchdog has announced. One official from Bangladesh Bank and another from Bangladesh Securities and Exchange Commission will sit initially once a month and coordinate between the two institutions, Shibli Rubayat Ul Islam said after a meeting on Monday. They will sit once every two months later. Shibli sat with the central bank following calls from analysts who pointed out a disconnect between the regulators as one of the reasons behind the bad condition of the stock market. One of the objectives of the latest effort is to help the banks establish a Tk 2 billion fund each for investment in stocks. The government allowed the banks to raise the funds with their own money beyond the limits on capital market investment as part of long-term plans to revive the sinking market. The banks can also take the money through treasury bill or treasury bond repo from the central bank if they fail to provide enough money of their own for the funds. “Besides this, Bangladesh Bank informed us about some legal complexities. The two officials will also work on the issue,” Shibli, the chairman of the stock market regulator, said. He discussed the call for relaxing curbs on banks’ disbursing cash dividend for the year 2019 until Sept 30 to boost the fund flow in the banking system during the coronavirus outbreak. Shibli asked the central bank to take into account interests of the small investors as well.

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