Stocks feel pain from Covid surge

Investors reacted with concern to a surge in Covid-19 cases in the country last week, with stocks breaking a gaining streak for nine consecutive weeks.  

The share prices of most companies dropped last week when the benchmark index, DSEX, of the Dhaka Stock Exchange (DSE), lost 14 points or 0.2% to settle at 6,053. 

The blue-chip index, DS30, of the country's premier bourse fell 0.36% to reach 2,197, and shariah index, DSES, declined 0.66% to settle at 1,290.

At DSE, 379 scrips have been traded last week. Of them, only 148 advanced, 210 declined and 17 remained unchanged. Four scrips have not been traded.

Last week the average turnover, a major indicator of the capital market, dropped 20% and came down below the Tk2,000 crore mark after two weeks.

The market capitalisation of DSE declined 0.35% to stand at Tk5.08 lakh crore last week that ended on 17 June.

Chittagong Stock Exchange (CSE) also registered a decline last week. Its prime index, CASPI, declined 14.4 points to close at 17,570 at the end of the week.

EBL Securities said in its weekly market review investors took a conservative approach on the bourses as Covid-19 cases have been on the rise in the outgoing week while many investors showed interest mostly in some quick-gaining small-cap stocks.

Meanwhile, the general insurance sector keeps the gaining spree last week, where United Insurance and Reliance Insurance took positions on the top gainer list with a 26% price hike each.

Investors also received the highest return of 6.4% from this sector followed by the fuel and power, tannery, miscellaneous and cement.

Safko Spinning was the top gainer with a 51.8% price hike, while the worst share was Alif Industries.

In the scrip-wise turnover chart, Beximco Limited grabbed the top position by contributing 8.66% of the DSE turnover followed by Pioneer Insurance and Orion Pharma.

Last week, the Bangladesh Securities and Exchange Commission (BSEC) lifted the floor prices for all the listed companies, which were left out of the benefit in the earlier two phases, from the next trading session. 

As a result, it will be possible to trade the listed companies' shares on the regular circuit breaker.

The circuit breaker allows the price of a share of up to Tk200 to be changed by a maximum of 10% every day and the limit is 8.75% for a stock of Tk200-500.

If the share price stays between Tk501 and Tk1,000, the circuit breaker limit will be 7.5%. It will be 6.25% for a share of Tk1,001-Tk2,000, 5% for a share of Tk2,001-Tk5,000, and 3.75% for a share above Tk5,000.

Newly listed companies will follow the same circuit breaker rules from the first trading day.

Besides, the DSE suspended Banco Securities' trading operations after the bourse found more than Tk66 crore shortage in the brokerage firm's consolidated customer account. 

The premier bourse also filed a case against the brokerage firm's top officials.