Dhaka stocks in freefall, key index extends losses for fourth day

Dhaka stocks have plunged 6.5 percent, the biggest decline since the new key index of the country’s prime bourse was launched in January 2013.

News Deskbdnews24.com
Published : 9 March 2020, 08:04 AM
Updated : 9 March 2020, 09:15 AM

The DSEX extended its losses for the fourth day after the government’s disease control agency reported first coronavirus cases.

Bangladesh confirmed first three coronavirus cases on Sunday, after the day’s market was closed. 

The Dhaka bourse closed 30 percent below its 52-week high on Mar 12, 2019. 

Global share markets plunged on Monday as panicked investors fled to the safety of bonds and the yen to hedge the economic trauma of the coronavirus, while oil plunged more than 30 percent after Saudi Arabia opened the taps in a price war with Russia, Reuters reports

Saudi Arabia had stunned markets with plans to raise its production significantly after the collapse of OPEC's supply cut agreement with Russia, a grab for market share reminiscent of a drive in 2014 that sent prices down by about two thirds.

The shock in oil was seismic as Brent crude futures slid $12 to $33.20 a barrel in chaotic trade, while U.S. crude shed $11.80 to $29.48.

In Asia, stocks tumbled, the safe-haven yen surged and emerging market currencies with exposure to oil tumbled in volatile trade.

Heavy selling was set to continue, with European futures sharply lower and U.S. futures hitting their down limit.

British stocks had the biggest intraday fall since 2008 and benchmark bond yields turned negative for the first time on Monday on investor fears that the coronavirus outbreak could stall the global economy.

As the worries about the coronavirus outbreak hammered markets, Prime Minister Boris Johnson was preparing to chair an emergency meeting at which more stringent measures to tackle the outbreak will be considered.

The FTSE 100 plunged to a three-year low after Saudi Arabia crashed the oil prices by slashing its own selling prices and raising output.

Yields on benchmark British government bonds turned negative for the first time ever as panicked investors rushed to the safety of gilts to hedge against the feared economic shock of the coronavirus.