Stocks fall for 3rd day as Omicron fears intensify

Dhaka stocks declined for the third consecutive session on Tuesday as investors monitored the spread of the Omicron coronavirus variant globally.

The benchmark DSEX index sagged 44 points or 0.64 per cent to settle at 6,837, hitting a high of 6,924 and a low of 6,834.

The Shariah-based DSES index dropped marginally 3 points or 0.25 per cent to 1,456 while the blue-chip comprising DS30 index was down 16 points 0.65 per cent to 2,568.

“Creeping headlines about the Omicron variant might weigh on investor’s sentiment,” said a stockbroker.

The Asian Development Bank also warned that the highly mutated Omicron coronavirus variant could have a "substantial" economic impact, as it cut its 2021 and 2022 growth forecasts for developing Asia.

As it (Omicron) appears to be significantly more transmissible than earlier variants, its economic impact could be substantial, it said.

The majority of the stocks closed in red territory. Out of the 377 issues traded, 88 advanced, 249 declined, and 40 remained unchanged.

“Stock on the Dhaka bourse took a steep plunge as sell-dominant trading on the board made equity indices settle in the red trajectory,” says EBL Securities on a note.

Since the trading activity remained volatile in the market, most of the investors kept offloading shares and favoured sitting on cash ahead of year-end adjustments, it said.

Most of the sectors displayed dismal performance, out of which services (-2.6 per cent), Telecom (-1.3 per cent), and ceramic (-1.2 per cent) observed the most corrections while tannery (7.1 per cent), Paper (2.9 per cent), and general insurance (0.3 per cent) have exerted the most positive returns on the bourse.

Shyampur Sugar Mills was the top loser falling about 8 per cent, followed by Zeal Bangla, One Bank, Meghna Pet, GBB Power and ISN Limited.

Fortune Shoes was the largest gainer surging more than 9.45 per cent, followed by AMCL (Pran), Pharma Aid, Apex Foods, Libra Infusion and Prime Insurance.

One Bank was the most traded stock with shares worth almost Tk 125 crore, accounting for nearly 12 per cent of the total turnover.

It was followed by Fortune Shoes, Beximco Ltd, Genex Infosays, GSP Finance, Delta Life Insurance, Olympic Industries, and Sonali Paper.

The port city bourse, CSE, also settled in red terrain. The selected indices (CSCX) and All Share Price Index (CASPI) declined by 104.5 points and 173.6 points respectively.