Dhaka stocks extend losses on virus warnings

Dhaka stocks dropped for the second day on Thursday as investors remained cautious amid media reports that Bangladesh was at high risk of the spread of coronavirus, which, if occurred, might hamper the country’s business activities.

DSEX, the key index of the Dhaka Stock Exchange, declined by 0.57 per cent, or 25.13 points, to close at 4,384.48 points on the day after losing 56.45 points in the previous session.

The DSEX lost 372 points in the last 10 sessions with two positive sessions.

The core index went through a rough session amid a few ups and downs and ultimately finished in the negative trajectory as investors remained cautious on the trading floor amid the news that Bangladesh is at high risk of spread of novel coronavirus, market operators said.

The media reported that the United States and China voiced concerns over Bangladesh as it was at high risk of the spread of coronavirus, which had so far affected 73 countries.

The investors were monitoring the impact of global coronavirus spread on Bangladesh economy, as the virus outbreak continued to spread to different countries including the US, Italy, Spain and Franch after it began in China.

With the coronavirus spreading all around the world including neighbouring India, the possibility of the virus spreading to Bangladesh has increased.

China is the single largest supplier of industrial raw materials for readymade garment and other sectors of Bangladesh while the US, Italy, Spain and France are major export destinations of the country.

EBL Securities in its daily market commentary said, ‘Concern over coronavirus impact on Bangladesh’s economy has been increasing, which was reflected in the market’s downward trend in the last two weeks. Several ailing macroeconomic indicators such as decreasing private sector credit and deposit growth, inflation fear, the governmnet’s increasing debt from the banking sector has also contributed to the market’s fall.’

‘Investors are also cautious ahead of earning declarations, which has contributed to a fall in turnover,’ it said.

The turnover on the DSE declined to Tk 415.13 crore on Thursday from Tk 510.66 crore in the previous trading session. Out of the 356 scrips traded on Thursday, 213 declined, 105 and 37 remained unchanged. (Source: New Age)

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