Bourses all round the world bounce after historic rout
The Dhaka bourse witnessed a dead cat bounce yesterday along with global markets though the reason is not the same.
DSEX, the premier index, surged 148.26 points, or 3.69 percent, to close the day at 4,156.32, riding on the news that that the Dhaka Stock Exchange management would sit with banks to persuade them to take up on the Bangladesh Bank's package for the stock market.
Last month, the central bank announced a Tk 200 crore fund from which banks can borrow to invest in stocks to prop up the ailing market.
Banks can borrow at 5 per cent interest for a five-year period through repurchase agreements (repo) against treasury bills and bonds they own.
Thus far, most of the banks have been reluctant to take up the loan. So far, around five have applied for the benefits.
"The banks want to support the market, so we said if they are facing any problem they can solve it by discussing with the central bank," said Kazi Sanaul Hoq, managing director of the DSE.
The bourse is also willing to speak with BB about the banks' problems, he said, adding that some banks will apply for the funds after getting approval from their boards.
"So, I hope we will see the results very soon," he added.
Meanwhile, bourses around the world bounced back after one of the worst routs since the 2008 financial crisis upon expectations of significant stimulus measures to soften the economic blow from the global coronavirus outbreak.
Japan's Nikkei 225 closed the day 0.85 per cent higher, while Hong Kong's Hang Seng climbed 1.4 per cent. Australia's benchmark S&P/ASX 200 index rebounded to close up 3.1 per cent.
The Shanghai Composite Index gained 1.8 per cent as Chinese President Xi Jinping arrived in Wuhan for a surprise visit.
This was his first trip to the epicentre of the coronavirus epidemic since the health crisis began, and comes as China reports a steep decline in the number of new cases.
President Xi's trip to Wuhan is declaring China has largely brought the coronavirus under control, according to analysts. Such trips bring hope among stock investors.
European markets were surging too, led by a rise of more than 2 per cent in London.
At the time of writing, London's FTSE 100 was up nearly 2.6 per cent. Germany's DAX rose 0.7 per cent. The Stoxx Europe 600 jumped 1.9 per cent.
On Wall Street, the S&P 500 rose more than 3 per cent, Nasdaq 2.4 per cent and the Dow Jones industrial average 2.5 per cent.
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