Stocks dip amid Omicron fears

Indices on both stock exchanges in the country plunged on Sunday due to a cautious sell-off approach by investors amid a rapid rise in coronavirus cases, triggered by Omicron’s new variant.

On selling pressure, the Dhaka Stock Exchange’s benchmark DSEX (DSE) fell 54 points or 0.78% to close at 6,932, while the blue chip index fell 0.92% to come in at 2,579 points.

Meanwhile, the All Share Price Index (CASPI) of the port city Chittagong Stock Exchange fell 183 points to close at 20,311.

Officials at some of the major brokerage firms said investors were discussing possible closures in the coming days following a rapid rise in Covid-19 infections in the country.

Moreover, in this situation, many sell stocks assuming that the country’s business sector might suffer again, they added.

Executives at other brokerage firms see the fall as a profit-taking attitude on the part of investors. According to them, the stock index has risen considerably in recent days and many are now profiting from it.

EBL Securities said in its Daily Market Review that risk averse investors have gone into a selling wave by taking stock indices into negative territory as stock prices were at a lucrative level due to the market surge. in recent sessions.

Meanwhile, investor participation in the stock market declined while total turnover fell 13% to Tk 1,461 crore from Tk 1,683 crore in the previous session.

Following the downtrend, the stock prices of 248 companies fell, while only 98 rose and 32 remained unchanged at the DSE.

Heavyweight stocks such as Beximco, Robi and British American Tobacco pushed the index down on Sunday. In addition, Fortune Shoe, Fareast Islami Life Insurance and Grameen Phone were trying to pull the clue but it was not enough.

Sector-wise, miscellaneous stocks were the most traded and contributed 14% to total sales for the day, followed by life insurance (12%) and pharmacy (8%).

With the exception of the four sectors, all sectors recorded declining performance, among which paper (3.2%), tannery (2.4%), ceramics (1.3%) and jute ( 0.8%) had the most positive returns.

While services (-3.1%), travel (-2.4%) and textiles (-1.7%) recorded the most corrections on Sunday.

Khulna Printing tops the list of winners with a 10% increase, followed by Bashundhara Paper and Fareast Islami Life Insurance.

In contrast, Shyampur Sugar Mills had the worst performance, which lost 7%, followed by RSRM Steel (5.88%) and S Alam Cold Rolled (5.59%).

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