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Dhaka, Bangladesh (BBN)- Global markets including Bangladesh fell sharply on Wednesday despite policy markers as well as authorities concerned have taken different stimulus policy to bring back stability in the market through restoring confidence of investors.
In Bangladesh, stocks tumbled further on Wednesday as panic gripped investors amid growing tension over the impacts of coronavirus.
The market opened on flying note and key index jumped more than 106 points within five minutes of trading riding on the news that the banks have started to invest in the share market from Wednesday.
However, the positive momentum failed to sustain as panic-driven investors went to sell-off to escape further losses.
At the end of the session, DSEX settled at 3,603, shedding 169 points or 4.46 per cent. DSEX also lost 279 points on March 9, the biggest single-day fall since its inception in 2013, a day after Bangladesh confirmed three cases of Covid-19, the disease caused by new coronavirus.
Turnover, an important indicator of the market, fell to BDT4.29 billion, which was 5.66 percent higher than the previous day’s BDT 4.06 billion.
The US stocks plunged so much that they set off an automatic halt in trading — the fourth in two weeks.
Global financial markets reeled again on Wednesday, as the coronavirus continued its relentless spread, governments ramped up efforts to contain it and investors waited for lawmakers in Washington to take action on proposals to bolster the American economy.
The selling reflected another extreme swing in sentiment on Wall Street. Stocks jumped on Tuesday as the White House called for urgent action to pump $1.0 trillion into the economy, according to the New York Times report. President Trump is expected to sign it. But when all was said and done, the S&P 500 fell about 5.0 per cent, stocks in Europe were sharply lower and oil prices cratered.
The turmoil on Wednesday was evident in other markets as well. The British pound fell to its lowest level in 35 years against the US dollar.
On the other hand, stocks in Asia Pacific lost their earlier upward momentum in Thursday morning trade as fears over the economic impact of the coronavirus pandemic continued to weigh on investor sentiment.
Major markets in the region fell into negative territory, with South Korea’s Kospi leading losses as it dropped 5.16 per cent while the Kosdaq index fell 4.76 per cent. Hong Kong’s Hang Seng index fell 2.38 per cent, the CNBC reported.
Meanwhile, stocks in the region had earlier gotten a boost after the European Central Bank (ECB) announced Wednesday a new Pandemic Emergency Purchase Programme that will use €750 billion (approx. $821 billion) to purchase securities to help support the European economy.
The ECB said it would embark on an enormous wave of bond purchases intended to counter the “serious risks” to the eurozone caused by the coronavirus pandemic.
The bank will buy up to 750 billion euros, or $820 billion, in government and corporate bonds and other assets, pumping cash into financial markets deeply rattled by the pandemic.
However, oil prices bounced back from Wednesday losses in the morning of Asian trading hours on Thursday. International benchmark Brent crude futures jumped 5.87 per cent to $26.34 per barrel. U.S. West Texas Intermediate crude surged 11.34 per cent to $22.68 per barrel.
BBN/SSR/AD