Stocks fall as Covid fears back

Stocks were down on Tuesday as Covid-19 fears gripped some investors who sold off their holdings to stay safe.

The key index began with a sharp fall of more than 70 points before recovering a few points on buying pressure on insurers at close.

The benchmark DSEX had a fall of 63 points or 1.15 per cent to 5,422, after ending flat in the previous session.

Other indices, the Shariah-based DSES index was down 17 points or 1.37% to 1,245 and the blue-chip DS30 index dropped 33 points or 1.57 per cent to 2,092.

“The stock market appears to be taking its cues from neighbouring India’s coronavirus situation,” said a top stockbroker.

A Covid tsunami hit India with a record global daily count, bringing the country’s health system to a breaking point and triggering an exodus of migrant workers from major cities, according to Indian media.

A new "double mutant" variant of the coronavirus has been detected from samples collected in India.

Taking India's situation in mind, Bangladesh on Sunday closed its border with India for two weeks in view of the sharp increase in coronavirus cases in the neighbouring country.

Due to the massive surge in Covid-19 numbers, India has been witnessing a shortage of hospital beds and medical-grade oxygen for the past few days.

The highest sell pressure took place on NBFI that experienced the loss of more than 2 per cent followed by pharmaceutical 1.64 per cent, engineering 1.22 per cent, energy 1.2 per cent, telecommunication 0.8 per cent, food and allied 0.39 per cent, and bank 0.33 per cent.

Only insurers survived the selling pressure after profit-booking fall in the previous session. Out of top ten gainers, none came from the insurance sector led by Crystal Insurance that hit the upper limit circuit breaker.

Investor participation decreased by over 31 per cent to Tk 8.24 crore and block trades contributed 4.1 per cent of the overall market turnover.

Bangladesh Export Import Company that dropped 3.1 per cent was the most traded share with a turnover of over Tk 1,00 crore.