Dhaka stocks plunged in the past week, stretching the losing streak to the third week, as panic selling intensified among investors with the country reporting its first three coronavirus cases and the World Health Organisation declaring the outbreak as pandemic. DSEX, the key index of the Dhaka Stock Exchange, plunged by 5.81 per cent, or 254.52 points, to close at 4,129.96 points on the last trading session in the past week on Thursday. The DSEX has lost 603 points in the last three weeks. The trading on the market was chaotic last week with the key index swinging wildly between concerns over the impacts of the global coronavirus outbreak on the economy and hopes that more banks would move to form special funds for investment in the ailing market. The key index fell by around 100 points on Sunday, the first trading session of the week, on global warnings about the consequences of the virus outbreak on the economy and concerns voiced by the United States, China and the country’s Institute of Epidemiology, Disease Control and Research that Bangladesh was at high risk of exposure to the virus. The IEDCR declared on Sunday evening that three people had tested positive for the coronavirus which sent the stock market into a tailspin with the DSEX dipping by 279.32 points on Monday, the biggest crash in the history of the index. The Asian Development Bank in an analysis warned that the ongoing COVID-19 outbreak could eat up as much as $3.02 billion off Bangladesh economy, if the country continued to take a hit from the global epidemic. The ADB also cautioned that there could be a sharp fall in domestic demand, foreign investment, trade and production linkages. Local and foreign organisations had issued warnings in recent days that the global outbreak would hurt Bangladesh’s export and import businesses and an outbreak in the country would deal a severe blow to its economy. The market recovered 223 points on Tuesday and Wednesday as the banks and institutional investors came forward to invest in the market following the instructions given by the Bangladesh Bank that allayed the panic sales. Four banks, including United Commercial Bank and Shahjalal Islami Bank, set up Tk 200-crore funds each with eight other banks preparing to form the funds soon. The market suffered another blow on Thursday with the DSEX losing 102 points after the WHO declared the coronavirus outbreak a pandemic on Wednesday giving the global stocks a very hard walloping. The investors became worried as they feared that the outbreak of the epidemic in United States, Italy and Spain would disrupt export business in Bangladesh. EBL Securities in its weekly market commentary said, ‘The frightened investors have lost trust in the market because of the coronavirus outbreak, which caused further disruptions for companies and the global economy that have impacted the Dhaka stock exchange and the world-leading stock markets.’ Therefore, the daily average turnover, an indicator of the investors’ participation on the trading floor, dropped to Tk 417.70 crore last week compared with that of Tk 482.15 crore in the week before. Average share prices of all the sectors dropped on the day. Share prices of telecommunication, banks, non-bank financial institutions and energy sectors decreased by 6.2 per cent, 5.8 per cent, 5.3 per cent and 5.3 per cent respectively. The share prices of all multinational companies except for Marico declined in the past week. Out of the total 358 shares traded last week, 326 declined, 25 advanced and 7 remained unchanged. DS30, the blue-chip index of the DSE, dropped by 5.52 per cent, or 80.66 points, and closed at 1,381.59 points. Shariah index of the bourse DSES shed 5.72 per cent, or 58.15 points, over the week to close at 957.79 points. Square Pharmaceuticals topped the turnover chart with shares worth Tk 63.29 crore traded last week. The other leaders in the turnover chart were Orion Pharmaceuticals, Orion Infusions, LafargeHolcim Bangladesh, Grameenphone, Beacon Pharmaceuticals, Monno Ceramics, VFS Thread Dyeing, Khulna Power Company and Khulna Printing and Packaging. Kohinoor Chemical Company fared the best in the past week with a rise in share prices of 21 per cent while Central Pharmaceuticals performed the worst, losing 21.56 per cent.
