DSEX tumbles to 14-week low as Omicorn rattles sentiment

Dhaka stocks continued to plummet amid lackluster trade on Sunday with the benchmark DSEX slipping to over 14-week low.

The benchmark DSEX index closed its sixth successive session in the red with a decrease of 78 points or 1.14 per cent to settle at 6,773, its lowest since August 18 when it was 6,771.

The market plunged from the start and the index continued its journey towards the south, falling below the 6,800-mark.

“Stock market tumbled as investors feared the adverse impact of the new coronavirus variant on the already bearish market,” said EBL Securities in its market analysis.

Omicorn, the new variant, also rattled investor sentiment as the new variant of the Covid-19 virus identified recently in Africa put a scare into the stock markets worldwide, said a top broker.

The variant, which the World Health Organisation has labeled "omicron" – was first identified in either Botswana or South Africa, according to conflicting reports, and has since been detected in Belgium, Hong Kong and some EU countries.

There was no respite for the investors who were already anxious about the economic and political tensions, dealers say.

Some other factors such as disagreement among the relevant regulators and inactive institutional investors also hammered the stocks, they said.

Amid the ongoing pessimism in the market, investors usually preferred to stay on the sidelines. Amidst the sluggish trading, turnover decreased by 1.49 per cent to Tk 837 crore, which is the lowest in seven months and a very poor transaction considering the market depth.

The investors concentrated trading on the bank, textile and miscellaneous, which together accounted for around 50 per cent of the total trade.

Most of the sectors showed dismal performance led by paper, miscellaneous and general insurance. The banking sector that faced heavy selling pressure in the last two sessions dropped less than 1 per cent. Newly listed Sena Kalyan Insurance and Acme Pesticides continued to fly high since their debut on the bourses.

LR Global Mutual Fund One was the worst loser declining 9.87 per cent, followed by Shyampur Sugar Mills, National Tea, KDS Accessories and The Peninsula Chittagong.

Beximco Ltd was the most traded stock, followed by One Bank, IFIC Bank, Paramount Textile, and First Security Islami Bank.

The Chittagong Stock Exchange (CSE) was also down. The CASPI, the main index of the CSE, shed 201 points or 1 per cent to 19,838.