Dhaka stocks close flat

Staff Correspondent | Published: 22:52, Jul 02,2020

 
 

Dhaka stocks remained flat on Thursday as investors were concerned that the magnitude of the coronavirus pandemic impact on the country’s economy might be very high.

DSEX, the key index of the Dhaka Stock Exchange, lost 0.05 per cent, or 2.35 points, to close at 3,986.73 points on the day after gaining 27 points in the previous six trading sessions.

After slight gains in the previous sessions, the index returned to the negative zone on Thursday as investors refrained from making any more investments due to the persistent gloomy situation on the market, market operators said.

They said that few investors had made some fresh buying in the last few days at the lowest possible prices under the floor price system introduced by the Bangladesh Securities and Exchange Commission, but the investors’ enthusiasm did not sustain as most of the investors remained on the sidelines due to the ongoing pandemic situation, they said.

The pandemic situation is worsening day by day, putting more pressure on the country’s economy.

With new 4,019 cases on Thursday, the coronavirus cases in the country exceeded the 1,50,000-mark, while 38 more COVID-19 patients died, taking the death toll to 1,926.

EBL Securities said, ‘Investors mostly followed the cautious stance over the long-term impact of COVID-19 on the macro-economy of the country as the pandemic hit consumer spending, private savings and investment.’

Both the institutional and retail investors are facing fund crisis, it said.

The price fall ceiling, enforced by the regulator on March 19 to save the market from a drastic fall amid the pandemic, prevented investors from selling shares of more than two-thirds of the scrips as the scrips were stuck at the ceiling, market operators said.

They said that the system eroded fund flow to the market and brought the market to a near stock-still.

The formation of around Tk 1,700 crore in special funds by 14 banks fell flat as the banks were yet to start investing the funds in the market.

Besides, the media reports that the owners of Crest Securities, a DSE brokerage house, went into hiding after embezzling clients’ fund made investors more nervous.

The turnover on the bourse declined to Tk 81.11 crore on Thursday compared with that of Tk 555.71 crore in the previous trading session.

Of the 273 scrips traded on the DSE on Thursday, 36 declined, 24 advanced and 213 remained unchanged.

DSE blue-chip index DS30 shed 0.11 per cent, or 1.49 points, to close at 1,339.49 points on the day.

The DSES index also declined by 0.32 per cent, or 2.97 points, to settle at 922.10 points.

Beximco Pharmaceuticals led the turnover chart with its shares worth Tk 10.99 crore changing hands on the day.

Bangladesh Submarine Cables Company, Wata Chemicals, Indo-Bangla Pharmaceuticals, GaxoSmithKline, Central Pharmaceuticals, Jamuna Bank, MJL Bangladesh, Pharma Aid and Al-Arafah Islami Bank were the other turnover leaders.

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