Stocks and shares crater on coronavirus fears
Dhaka STOCK MARKET saw its biggest single-working day fall since its inception in 2013 yesterday, simply a day time after Bangladesh confirmed three situations of COVID-19.
DSEX, the benchmark general index of the DSE, plunged 279.32 details, or 6.51 per cent, to close the day at 4,008.05.
Investors are panicking that the coronavirus will impact listed companies' income, said Khairul Bashar Abu Taher Mohammed, ceo of MTB Capital.
This fear is not simply limited to Bangladesh's bourse; all over the world shares are tumbling, he explained.
Trading in Pakistan's currency markets was halted for 45 minutes on Mon, with the losses triggering exchange rules as panic gripped global personal markets after a price war in crude put into the background of dread encircling the coronavirus.
The country's benchmark KSE-100 index plunged up to 6 per cent, the most since 2006, in Karachi as top oil shares fell.
Yesterday, Nikkei 225 dropped 1,050 tips and Euro Stoxx 50 declined 237 points.
US markets plunged almost 7 %, after global shares were shaken by the crash on oil rates and the spread of coronavirus outbreak.
The listed corporations will definitively be influenced as their main sourcing nation for raw materials is China, said Bashar, as well a former secretary general of the Bangladesh Merchant Bankers Association.
The bleak macroeconomic outlook has dented the assurance of stock investors, said UCB Capital Management, among the stock brokers, in its daily markets analysis
"In addition, the coronavirus outbreak found in the united states intensified panic in the market, which led to the massive sell-offs," it added.
Most large pharma companies have raw materials inventory for four weeks, said a top official of a stated medicine maker requesting anonymity.
"If the coronavirus problem prolongs for five to six months it will certainly impact our business. Hence, we are seeking some other sources for raw materials," he added.
A rod maker said they nonetheless have raw materials so they are developing their goods as normal.
"Even so, if the virus carries on production will end up being hampered," he added.
Turnover rose 16.4 % to Tk 499.35 crore yesterday.
Square Pharmaceuticals was first the top traded stock using its turnover worth Tk 15.64 crore, accompanied by Grameenphone, LafargeHolcime Bangladesh, Summit Power and Ocean Pearl Hotel.
Chittagong STOCK MARKET also witnessed a major fall as its major index plunged 466.88 items, or 5.88 %, to end the day at 7,470.67.
A stock trader Mamun Khan said investors were panicked as almost all of them cannot even sell their shares due to a lack of buyers.
Moreover, many stock brokers and merchant banking institutions had to execute forced sell off in the mortgage loan accounts because of huge fall.
Such forced sell as well triggered the index slide, Khan added.
