Stocks suffer worst drop in 4 months

Shares in Bangladesh fell to an over-four-month low yesterday as investors embarked on a sell-off after Russia’s invasion of Ukraine sent global oil prices soaring and jolted global markets .

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), fell 1.57% losing 109 points to close the day at 6,839. It was the biggest single-day drop since on October 25, when it plunged 120 points, or 1.72%.

For all the latest news, follow the Daily Star’s Google News channel.

Losers outnumbered winners with 326 stocks down, 30 up and 21 seeing no price movement.

“As the Russian military operation in Ukraine has already hit the international oil market, it has spooked investor sentiment. Fear is mounting that listed companies will also be affected due to rising oil prices” , said Mir Ariful Islam, Managing Director. managing director of Sandhani Asset Management.

Oil prices surged on Thursday, with Brent, the global benchmark, rising above $105 a barrel for the first time since 2014 as the invasion heightened concerns about disruptions to global energy supplies.

Global stocks also fell.

All European stocks opened 2.5-4% lower.

Markets in Hong Kong, Tokyo, Shanghai, Seoul, Sydney, Singapore, Taipei, Jakarta and Wellington all fell.

In India, the Sensex 30-stock pack fell 4.72% and the broader NSE Nifty fell 4.78%.

Amid the selling frenzy, turnover on the DSE rose 18% to Tk 1,050 crore yesterday.

Beximco Ltd was the most traded stock with its shares amounting to Tk 89 crore. Orion Pharmaceuticals recorded revenue of Tk 37 crore, Bangladesh Shipping Corporation Tk 29 crore, Dragon Sweater and Spinning Tk 26 crore and Olympic Industries Tk 21 crore.

Pacific Denims topped the list of winners with an increase of 9.91%. Crown Cement rose 9.86%, Nurani Dyeing rose 8.45%, Evince Textile rose 4.80% and Dragon Sweater and Spinning gained 4.7%.

Imam Button was the worst performing issue of the day, dropping 6.81%. Yeakin Polymer was down 6.69%, ADN Telecom was down 6.36%, Apex Spinning was down 6.21% and Union Insurance was down 5.98%.

“The stock market has seen a massive drop due to the global turmoil,” International Leasing Securities Ltd said in its daily market review.

Investors are worried about the tension between Russia and Ukraine. Meanwhile, oil and gas prices surged in the international market on fears the Ukraine-Russia crisis could disrupt supplies across the world, he said.

As a result, almost all large cap stocks faced a price correction, dragging down the key index.

Investors’ attention was mainly focused on textiles (18.5 percent), pharmaceuticals and chemicals (13.6 percent) and miscellaneous (12.6 percent).

The Chittagong Stock Exchange also collapsed. The Caspi, the port city’s main stock index, fell 322 points, or 1.58%, to end the day at 19,991.

Of the stocks, 36 advanced, 254 fell and 19 remained unchanged.

About Nicole Harmon

Check Also

Stocks that are in the news today

Photo: iStock HIGHLIGHTS Welspun Corp Completes Acquisition of Nauyaan Shipyard Seshasayee Paper wins the tender …