Stocks beat lockdown worries

Stocks on 15 and 18 April witnessed a strong rally despite worries investors had about the market with the ongoing strict lockdown.

On Sunday, the fifth day of the lockdown, stocks saw positive gains with investors increasing participation and pulling the market upwards.

DSEX, the broad based index at the Dhaka Stock Exchange (DSE), gained 0.39% or 21.23 points, to reach 5,331.

The Chittagong Stock Exchange's (CSE) main index, CASPI, also gained by 0.22% or 34.58 points to reach 15,413.79.

The government imposed a seven day strict lockdown from 14 April to curb spread of the novel coronavirus. Before the lockdown was imposed, investors were worried about how it would impact the market.

After Sunday's trading session, EBL Securities wrote in its daily market commentary that the regulator's efforts to keep the market open amid the lockdown had largely contributed to a panic driven selloff, while many investors were taking positions on prospective sectoral stocks.

With better investor participation, turnover increased slightly by 8% to Tk602.76 crore from Tk556.42 crore at the DSE. 

On the sectoral front, general insurance contributed the highest, 21.41%, to the DSE daily turnover.

Miscellaneous and non-banking financial institutions (NBFIs) followed with 19.64% and 16.25% respectively.

Most of the sectors showed positive performance. Of them, jute generated a 4.6% return, NBFI 2.9%, and cement 2.1%.

Of the 348 issues traded, 103 advanced, 165 declined, and 80 remained unchanged.