Stocks decline in volatile trade

Dhaka stocks ended lower amid volatility on Tuesday as the investors followed closely the news regarding the new strain of the coronavirus.

The benchmark DSEX index swung between green and red in the morning before succumbing to selling pressure from pharmaceuticals, energy, textile, telecom, engineering, non-banking financial institutions, and banking sectors.

At the closing bell, the DSEX lost over 16 points or 0.32 percent to settle at 5,098 after hitting a high of 5,125 and a low of 5,097.

Among other indices, the DSES shed about 5 points or 0.41 percent at 1,177 and blue-chip DS30 slipped over 5 points or 0.31 percent at 1,812.

The market received support from the insurance and cement recording major gains that put a floor under the fall.

The new strain of Covid-19 prompted several countries, including Bangladesh, to cancel international flights and travel restrictions have been imposed in many countries to limit the spread of the new Covid variant.

“Investors were spooked by the developments on the coronavirus and restrictions measures taken by several countries,” said a broker.

The turnover was more than Tk 975 crore, down from the previous session’s Tk 1,137 crore. Losers outshined gainers significantly as out of 358 issues traded, 186 closed negative, 84 positive and 88 remained unchanged.

The newly listed Crystal Insurance gained for the second straight day hitting the upper limit circuit breaker. Its share prices increased to Tk 22.5 from Tk 15 a share.

First Finance was the worst performing company falling almost 8 percent to Tk 5.8 per share. The company remained under pressure after it posted negative earnings in the third quarter (July-September).

Beximco Ltd continued to remain the most traded issue, followed by Beximco Pharmaceuticals, Lafarge Holcim Bangladesh Ltd, Fortune Shoes, Orion Pharmaceuticals, BSCCL, and IFIC Bank.