Stocks fall steepest in 12 months

Though the global stocks are rebounding on the back of optimism that the Russia-Ukraine war might not be snowballed into a broader international conflict, Bangladesh's stock market bled yesterday, sending the Dhaka bourse's benchmark index to a two-month low.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), plummeted 163 points, or 2.38 per cent, to 6,676. This was the steepest single-day decline since February 7 last year.

Because of the Russian-Ukraine conflict, the index lost 272 points in the last two days.

What is more, 143 companies that accounted for around 38 per cent of the total trade volume shed more than 4 per cent on the premier bourse.

The global stock market started to witness an upward curve in the last two days as investors hope that the war between Russia and Ukraine would not spread to other countries, said a top official of an asset management company.

In the last two days, key global stock indices saw considerable gains: the Dow Jones Industrial Average rose 2.79 per cent, the S&P 500 was up 2.91 per cent, the Nikkei 225 gained 1.95 per cent, the Dax Performance Index advanced 3.66 per cent, and the BSE Sensex increased 2.43 per cent.

"But it was not reflected in Bangladesh's stock market because our people are sensitive and panicked," said the asset manager.

Out of the total traded stocks of 379 at the DSE, 96 per cent marked a fall, while 10 advanced and four remained the same.

Investors' participation dipped which is why the turnover plunged 12 per cent to Tk 916 crore.

With the fear stemming from the soaring oil prices in the global market, local investors went on a selling spree last week but now general people seem to have panicked as well, said a stockbroker.

As a result, they sold all types of shares, even those of well-performing companies, he said, adding that the selling pattern shows that people were scared.

Stocks of Beximco Ltd traded the most, churning out Tk 56 crore followed by Bangladesh Shipping Corporation, British American Tobacco Bangladesh, Fortune Shoes and Orion Pharmaceuticals.

Pacific Denims rose the highest at 6 per cent followed by Yeakin Polymer's 1.79 per cent, ADN Telecom's 1.22 per cent, Doreen Power's 1 per cent and Hwa Well Textiles' 0.89 per cent.

Alltex Industries shed the most, plunging 10 per cent followed by Meghna Condensed Milk that fell 9.69 per cent, while Union Insurance went down 9.14 per cent, Takaful Insurance 8.85 per cent and Bangladesh National Insurance 8.39 per cent.

The Chittagong Stock Exchange (CSE) also witnessed a decline. The CASPI, the main index of the port city bourse, fell 490 points, or 2.45 per cent, to 19,500.

Among the total traded stocks of 304 at the CSE, nine rose, 284 dropped and 11 remained unchanged.

The jittery investors lost their hope as the Ukraine-Russia issues have created uncertainty about the future of the global as well as the local economy, said International Leasing Securities Ltd in its daily market review.

Among all the sectors, general insurance dropped 5 per cent, ceramics 4.3 per cent and cement 3.6 per cent.

The investors' attention was mainly concentrated on textile (14.5 per cent), pharmaceuticals and chemicals (11.6 per cent) and banks (10.9 per cent).