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The Financial Express

Stocks nosedive in early trading

DSEX dips below 4,800-mark at opening


| Updated: November 24, 2020 11:28:49


Evaly and Fianancial Express Evaly and Fianancial Express
Traders, wearing masks, monitoring stock price movements on computer screens at a brokerage house in the capital city — FE/Files Traders, wearing masks, monitoring stock price movements on computer screens at a brokerage house in the capital city — FE/Files

Stocks tumbled in the early trading on Monday as investors went on heavy sell-offs amid growing tension over the second wave of coronavirus pandemic while some focused on the primary market.

Following the previous three days’ price fall, the Dhaka Stock Exchange (DSE) and the Chittagong Stock Exchange (CSE) witnessed a free-fall in the early trading this morning.

Within the first 30 minutes of trading, the DSE key index eroded more than 57 points while the CSE All Share Price Index (CASPI) slumped 119 points at 10:30 am when the report was filed.

DSEX, the prime index of the DSE, went down by 57.83 points or 1.19 per cent to reach 4,783 points at 10:30 am.

Market analysts said investors are reluctant to make fresh investment in stocks amid the rising trend of Covid-19 infections in recent days while some gave their attention to the primary market.

Notable price fall of large-cap stocks like Square Pharma, ICB, BATBC, United Power and Grameenphone contributed to the free-fall of indices in the early trading.

Recent price bidding and IPO subscription of a number of companies had stuck a large amount of fund in the primary market which is a reason for low turnover in recent days, said a leading broker.

He noted that many investors are also reluctant to make fresh investment in stocks following the media reports that the second wave of coronavirus pandemic starts taking a toll on garment export.

The international clothing retailers and brands have placed 30 per cent fewer work orders year-on-year for the next four months starting December, he said, quoting media reports.

Meanwhile, two other DSE indices also saw a downward trend till 10:30 am. The DS30 index, comprising blue chips, fell 24.59 points to reach at 1,660 and the Shariah Index (DSES) shed 17.04 points to reach 1,103 points till then.

Turnover, another important indicator of the market, stood at Tk only Tk 887 million when the report was filed.

Of the issues traded till then, 55 advanced, 175 declined, and 63 remained unchanged.

Square Pharma was the most traded stock till filing of this report with shares worth Tk 107 million changing hands, closely followed by Provati Insurance, Brac Bank and ADN Telecom.

The Chittagong Stock Exchange (CSE) also saw a downward trend till then with the CASPI losing 119 points to stand at 13,744, also at 10:30 am.

The Selective Categories Index (CSCX) also plunged 73 points to reach 8,276 till then.

Of the issues traded till then, 15 gained, 50 declined, and 16 issues remained unchanged with Tk 15 million in turnover.

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