Impact of coronavirus rattling global economy spooks stock investors
DSEX, the key index of Dhaka Stock Exchange (DSE), continued its falling streak for seven straight sessions amid fear of further deterioration in the already sagging financial system under the impact of the novel coronavirus.
In addition to the global faltering economic activities, concerns over possibility of banks’ lower profits due to the implementation of the single-digit lending rate from next month also acted negatively in the stock business.
The DSEX settled at 4409.91 after losing 70.31 points or 1.56% on Sunday.
The total turnover took a negative turn, ending at Tk456 crore, which is 18.7% less than last session.
Market dipped last seven sessions that resulted in the fall of 323 points.
Talking to Dhaka Tribune, market analysts said the coronavirus impacted the world's capital markets into record lows since the 2008 global financial crisis and the world’s leading indices were taking the hit.
The country’s export and import activities might suffer for months due to the epidemic. The apprehensive investors opted to be skeptical and thus took a negative turn, they also said.
The pharmaceuticals sector contributed 20.1% of the total turnover while textile, engineering and fuel and power sectors contributed 15.5%, 14.7% and 8.4% respectively, as per the daily market analysis of UCB Capital Management Limited.
VFS Thread Dyeing secured the leadership position on the top turnover chart with a turnover of Tk13.8 crore with its share price closing at Tk30.6 per share. Khulna Printing and Packaging secured the highest gain of 8% during the session. Tung Hai Knitting turned out the worst loser with its price declining by 9.1%.
Among the traded issues 46 gained, 289 declined and 20 remained unchanged during the session in DSE while 26 gained, 198 declined and 16 remained unchanged in CSE.
EBL Securities Limited in its daily market commentary said that the straight seven days bearish run that had also stunned the trading activities as concerned investors continued their sell-rush on stocks of major sectors, expecting further decay.