Stock turnover down to 8-month low

Trade of stocks dropped to an eight-month low yesterday amidst a fast increase in Covid-19 infections.

Turnover, an important indicator of the stock market, fell 21 per cent to Tk 382 crore.

It was last in that range on July 27, 2020, when it had stood at Tk 371 crore.

Yesterday the market had started to rise since the early hours of trade despite an ongoing dawn-to-dusk hartal called by Hefajat-e-Islam.

The upward trend was witnessed till the end of the day, though turnover had fallen.

Investors are on the sidelines as they apprehend that the fast increase of Covid-19 infections may lead to a deterioration of the pandemic, said stock investor Taufik Ali.

Thirty-five people died in 24 hours, according to a press release issued by the Directorate General of Health Services (DGHS) yesterday.

At least 3,908 new infections were recorded.

Infection numbers in 24 hours has remained above 3,500 for the sixth consecutive day.

"So investors are in the wait-and-see position," said Ali.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), rose 16 points, or 0.31 per cent, to 5,343.94 yesterday.

A bounceback or bear run in the upcoming weeks depends on whether the spread of the pathogen can be contained, said Ali.

The spread of the virus will have an impact on the economy and earnings of the listed companies, he clarified.

Already the readymade garments sector is getting a lower number of orders from abroad due to the pandemic.

Local garment suppliers said they were receiving 20 per cent fewer work orders for the next season beginning from June.

First Finance topped the gainers' list rising 9.37 per cent followed by Prime Insurance Company, Nitol Insurance, Rahima Food Corporation and Purabi General Insurance Company.

Beximco topped the turnover list with trade worth Tk 31 crore followed by Beximco Pharmaceuticals, Premier Bank, Robi Axiata and LankaBangla Finance.

Aman Cotton Fibrous shed most followed by Meghna PET Industries, Asian Tiger Sandhani Life Growth Fund, Padma Islami Life Insurance and Union Capital.

The port city bourse also rose yesterday. The CASPI, the general index of the Chattogram Stock Exchange, was up 53 points, or 0.34 per cent, to stand at 15,478.