Last hour bargain hunting saved the day in DSE, CSE
Bargain hunting in sharply falling stocks in the last hour of trading helped the Dhaka-Chattagram bourses end the day without major losses.
Following the 2% drop on Monday, Dhaka Stock Exchange's (DSE) broad-based index DSEX, fell over 1.4% to 6,318 points by 1.00 pm with a decline of over 90% scrips.
However, institutional funds waiting for lucrative prices appeared to put more buy orders and price of more scrips had an intraday rebound in the last hour that helped indices almost recover what they lost in the early hours.
DSEX finally closed above 6,403 netting a 27-point or 0.43% end-of-the-day decline, while less volatility in selective scrips helped the blue-chip index DS30 and Shariah index DSES close only 0.1% lower than the previous close.
Turnover in the DSE dropped to Tk780 crore on Tuesday which soared to over Tk1,024 crore on Monday.
Analysts blame the turbulent global macroeconomic situation which is forcing central banks to raise interest rates to fight inflation and a looming risk for the country to suffer for the same.
A sudden pressure on the investment corporation (ICB) to pay back over Tk500 crore of funds it borrowed from state-owned Sonali Bank also added to the recent panic in the market.
ICB, however, has written to all its lenders to revolve the credit lines for another term that would help the de-facto market maker support the stock market better.
