Stocks tank 2.74pc on war jitters

Stocks in Bangladesh are feeling the jitters of the looming threat posed to the global economy for the war between Russia and Ukraine.

The DSEX, the benchmark index of Dhaka Stock Exchange (DSE), tanked 182 points, or 2.74 per cent, to reach 6,456 at the end of the day.

This is the highest single-day fall since April 4, 2021 when it had plunged 182 points, or 3.44 per cent.

In the last four consecutive days, the prime index plummeted 297 points and sent the index to its lowest position in over seven months. The index was last at 6,425 on July 29 last year.

People are now in panic witnessing the continuous fall of the index and high oil prices in the world market, so they have embarked on a selling spree, said a stock broker.

Oil prices soared to $139 a barrel, the highest in almost 14 years, while wholesale gas prices for next-day delivery more than doubled, according to a BBC report.

Stock markets in the major European countries plunged on Monday as soaring oil and gas prices sparked fears of a global economic shock from Russia's invasion of Ukraine, the report added.

Some foreign investors also sold shares, so companies with good performance records also plunged heavily, said the stock broker.

When oil prices go up, every industry is affected, for which investors apprehend that the performance of listed companies may deteriorate in the coming days.

The panic caused the market to go tumbling down and ate awaypeoples' money, he added.

In the last four trading days, the value of stocks in the DSE eroded by Tk 21,852 crore, or 4 per cent, shows the DSE data.

At the DSE, seven stocks advanced, 364 declined and eight remained unchanged.

Turnover rose 13.6 per cent to Tk 740 crore.

Beximco remained the stock to be traded the most, with shares worth Tk 41 crore changing hands, followed by Bangladesh Shipping Corporation, British American Tobacco Bangladesh, Orion Pharma and Fortune Shoes.

BDCOM Online topped the gainers' list, rising 9.75 per cent, followed by Tamijuddin Textile Mills, ADN Telecom, Dutch-Bangla Bank, and ICB AMCL Sonali Bank Limited 1st Mutual Fund.

Meghna Condensed Milk Industries shed the most, dropping 10 per cent, followed by Aramit Cement, Vanguard AML Rupali Bank Balanced Fund, Apex Spinning and Knitting Mills and Jute Spinners.

A merchant banker said stock market volatility was common for any part of the world economy alongside political turbulence.

But people holding stocks of good companies should not panic, he said, expressing hope that the problems would soon dissipate.

Chittagong Stock Exchange (CSE) also tumbled yesterday. The CASPI, the main index of the CSE, fell 455 points, or 2.31 per cent, to reach 18,989 at the end of the day.

Among the 294 stocks to undergo trade, 19 rose, 254 fell and 21 remained the same.