Stocks suffer worst decline in 4 months

Stocks in Bangladesh slumped to a more than four-month low yesterday as investors went for massive selloffs after the Russian invasion of Ukraine sent global oil prices higher and rattled global markets.

The DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), tumbled 1.57 per cent as it lost 109 points to close the day at 6,839. This was the steepest single-day decline since October 25, when it plunged 120 points, or 1.72 per cent.

Losers outnumbered gainers with 326 stocks declined, 30 advanced and 21 did not see any price movement.

"As the Russian military operation in Ukraine has already hit the international oil market, it spooked the sentiment of the investors. The fear is intensifying that the listed companies will also be impacted because of the higher oil prices," said Mir Ariful Islam, chief executive officer of Sandhani Asset Management.

Oil prices jumped on Thursday, with Brent crude, the world benchmark, climbing above $105 a barrel for the first time since 2014, as the invasion exacerbated concerns about the disruptions in the global energy supply.

Global stocks plunged as well.

All the European stocks opened with 2.5 per cent to 4 per cent lower.

Markets in Hong Kong, Tokyo, Shanghai, Seoul, Sydney, Singapore, Taipei, Jakarta and Wellington all fell.

In India, the 30-share pack Sensex tumbled 4.72 per cent and the broader NSE Nifty tanked 4.78 per cent.

Amid the selling spree, turnover on the DSE rose 18 per cent to Tk 1,050 crore yesterday.

Beximco Ltd was the most traded stock with its shares amounting to Tk 89 crore transacted. Orion Pharmaceuticals saw a turnover of Tk 37 crore, Bangladesh Shipping Corporation Tk 29 crore, Dragon Sweater and Spinning Tk 26 crore, and Olympic Industries Tk 21 crore.

Pacific Denims topped the gainers' list as it rose 9.91 per cent. Crown Cement was up 9.86 per cent, Nurani Dyeing advanced 8.45 per cent, Evince Textile increased 4.80 per cent, and Dragon Sweater and Spinning gained 4.7 per cent.

Imam Button was the worst-performing issue on the day, giving up 6.81 per cent. Yeakin Polymer lost 6.69 per cent, ADN Telecom was down 6.36 per cent, Apex Spinning slipped 6.21 per cent, and Union Insurance declined 5.98 per cent.

"The stock market witnessed a massive fall due to the worldwide turmoil," said International Leasing Securities Ltd in its daily market review.

The investors are getting worried about the tension between Russia and Ukraine. Meanwhile, oil and gas prices surged in the international market on the fears that the Ukraine-Russia crisis may disrupt supplies across the world, it said.

As a result, almost all the big cap stocks faced price correction, dragging the key index.

The investors' attention was mainly concentrated on textile (18.5 per cent), pharmaceuticals and chemicals (13.6 per cent) and miscellaneous (12.6 per cent).

The Chittagong Stock Exchange also slumped. The Caspi, the main index of the bourse in the port city, plummeted 322 points, or 1.58 per cent, to end the day at 19,991.

Of the securities, 36 advanced, 254 fell and 19 remained unchanged.