The new week has seen stocks open with a sharp decline as risk-averse investors dumped their holdings following the mandate of strict lockdown ahead and withdrawal of floor restrictions for 66 issues.
As soon as the market opened, it saw a steep fall, and the DSEX, the prime index of the Dhaka Stock Exchange (DSE), fell more than 73 points or 1.40 per cent to stand at 5,180 points within the first 30 minutes of trading.
Market analysts have stated that the withdrawal of floor price restrictions for 66 listed companies in addition with deepening worries over the increasing COVID-19 cases and deaths in the country took a heavy toll on the struggling market.
In the previous week, the Bangladesh Securities and Exchange Commission (BSEC), withdrew the floor price of 66 listed companies set in 2020 during the first wave of the coronavirus pandemic when the market was in free fall.
On April 10, however, the stock market regulator lowered the circuit breaker limit to 2 per cent from the existing 10 per cent for 66 companies so that they can stop the price to fall.
2 other indices also experienced a steep decline till then with the DS30 index, which contained blue chips, lost 32.11 points to reach 1,958 points and the Shariah Index (DSES) plunging 20.13 points to stand at 1,177 points till then.
Another important indicator of the market, turnover, stood at Tk 1.80 billion (Tk 180 crore) within the first 30 minutes of trading.
Of the issues traded, 200 declined, 50 advanced and 47 remained unchanged on the DSE trading floor till then.
Beximco was the most traded stocks till then with its shares worth Tk 142 million (Tk 14.2 crore) changing hands, followed by Robi, BD Finance, Purabi General Insurance and Saif Powertec.
The port city bourse, the Chittagong Stock Exchange (CSE), also fell sharply at opening with its CSE All Share Price Index (CASPI) losing 172 points to stand at 15,058.
Of the issues traded till then 74 declined, 16 gained and 14 remained unchanged with Tk 46 million (Tk 4.6 crore) in turnover.