Stocks sink ahead of complete lockdown

Dhaka stocks fell sharply on Sunday as investors rushed to sell their holdings ahead of all-out lockdown starting from Wednesday.
They believe hopes of economic recovery become elusive with rising coronavirus cases and deaths.
Amid the surge in Covid-19 infections in the country and around the world, the investor sentiment and dragged the market down, analysts say.
Besides, the regulator’s capping lower limit circuit breaker on 66 companies failed to prevent the fall of the stocks, they added.
 The heavy sale-off spree pushed the benchmark DSEX index down by more than 100 points within an hour of the opening bell. At closing, it downed 90 points or 1.71 per cent to settle at 5,164.
All the sectors were beaten down. The ceramics sector was the worst loser, followed by telecommunications, engineering, NBFI, insurers, cement, energy, pharmaceuticals, and banks.
“The market is under pressure ahead of the complete lockdown amid rising coronavirus cases," said Professor Mohammed Helal, a capital market expert.
The government announced that the country will go for a one-week stricter lockdown from April 14 to curb the second wave of Covid-19.  
“At the same time, lifting the floor price for 66 companies has also accelerated to the fall of the market,” said the expert.
After lifting the floor prices for the 66 companies, the lower limit circuit breaker was imposed on the companies but the move was of no use as the prices of those companies declined.
 Mizan Ur Rashid Chowdhury, president of the Bangladesh Investors Unity Council, said that investors were upset by the pandemic.
On top of that, the BSEC was making the market more volatile by taking decisions one after another, he said.
Eastern Bank Limited survived the selling pressure as it gained the highest with a rise of more than 6 per cent while newly listed Index Agro Industries was the worst loser falling 9.8%.