Dhaka stocks closed higher Monday amid violent streets protest, as investors went for late hour buying spree.
The investors went for buying spree following the Bangladesh Bank's (BB) official announcement of allowing merchant banks one more year time to adjust their single-borrower exposure limit.
During the trading
hour, the central bank officially announced that the merchant banks
will get one more year time until December 31, 2012 to adjust their
single-borrower exposure limit.
"The central bank's specific time frame has made investors positive during the trading hour and they went for buying spree, which helped the market to close higher," commented a stock broker.
Earlier,
the BB set December 31, 2011 deadline for banks to bring down such
exposure to 15 per cent of their paid-up capital and the merchant
bankers were under tremendous pressure to trim the single-borrower
exposure limit by December 31.
In this context, the merchant
bankers urged the central bank to extend the deadline until 2014, as
liquidity crisis is the main cause for the continued market fall.
"Though the Bangladesh
Bank assured verbally to extend the time frame earlier the investors
were in confusion. But, the investors get some relief from this specific
time frame," said a market insider.
