BB-BSEC row, Omicron taking a toll on stock turnover

Turnover in the domestic stock market nearly hit an eight-month low yesterday as investors are avoiding trade amid fears of a fresh wave of Covid-19 infections, according to analysts.

Besides, investors are shaky about making purchases at the moment as the market has been in a state of decline due to an ongoing tussle between the Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh Bank.

Turnover plunged to Tk 652 crore at the Dhaka bourse yesterday, down 19 per cent from Tk 807 crore the previous day.

The last time turnover had reached such a level was on April 8, when the important market indicator stood at Tk 602 crore.

"Investors are quite unsure about investing considering the pandemic situation," a stockbroker said.

The highly infectious Omicron variant of Covid-19 is spreading fast in the EU and countries across the globe have already reinstated nationwide lockdowns to contain its transmission.

"So, this impact will soon fall on Bangladesh's economy as well," he added.

The stockbroker went on to say that the sour relations between Bangladesh Bank and BSEC is also impacting investor confidence.

However, the Dhaka Stock Exchange (DSE) ended the day on a positive note by adding 20.70 points to its benchmark index despite decreased investor participation, International Leasing Securities said in its daily market review.

The DSEX, the prime index of the Dhaka bourse, edged up 0.30 per cent to reach 6,757 points yesterday.

After the widely discussed disagreements between Bangladesh Bank and the BSEC recently came to the government's notice, the finance ministry asked the stock market regulator to step up its coordination with relevant parties, and strengthen its surveillance on suspicious transactions and price manipulation.

"This may have raised some level of confidence among investors, which helped the benchmark index stay in the green by the day's end," it added.

At the DSE, 176 stocks advanced, 147 declined and 55 remained unchanged.

Tamijuddin Textiles topped the gainers list, rising 9.95 per cent, followed by Fine Foods, Sonali Ansh, Hakkani Pulp, and Desh Garments.

Stocks of Beximco Ltd traded the most, worth Tk 102 crore, followed by One Bank, Eastern Lubricants, IFIC Bank, and GSP Finance.

Hwa Well Textiles shed the most, dropping 7.34 per cent, followed by Bangladesh National Insurance, Sonali Paper, Asia Insurance, and Sena Kalyan Insurance.

The Chittagong Stock Exchange (CSE) also rose yesterday as the CASPI, the main index of the port city bourse, increased 84 points, or 0.42 per cent, to 19,680.

Among the 302 traded stocks, 147 rose, 106 fell and 49 remained same.