The stock market Wednesday witnessed a bizarre kind of sea-saw price movements that forced some angry investors to take to the streets.
The main index, the DGEN, shed a massive 547 points within one hour and 15 minutes from the start of the trading session at 11am, triggering serious panic among small investors. However, after a gap of about 10 minutes the index started rising coinciding with the street agitation by a section of small investors. The main index fluctuated during the remaining part of the day’s session and, finally, ended at 1.56 per cent lower than the previous day.
Several hundred panicky as well angry investors staged demonstration in front of the country’s premier bourse, the Dhaka Stock Exchange (DSE) and the Securities and Exchange Commission (SEC), protesting a total 466 points fall in share prices for the consecutive three sessions. The angry investors blocked the road in front of the DSE building and staged demonstrations there soon after the massive erosion began. Later, they marched towards to the SEC building at the Jiban Bima Tower at Dilkusha. However, no major untoward incident
took place due to strong vigilance by the law enforcers.
Investors and stock dealers blamed frequent intervention by the securities regulators through the issuance of directives as the main reason for the ongoing market instability.
“We have lost confidence in the market and disposed of shares to avert further loss. We don’t know what will be the next move of the SEC”, said an agitated investor in front of the DSE.
However, in the face of investors’ protest, the SEC withdrew its latest directive relating to the en-cashing of cheques submitted by investors against their share purchase orders. The SEC in a directive issued earlier asked the stock dealers not to buy shares unless and until such cheques are en-cashed.
The agitating investors urged the government to take necessary measures for stabilizing the country’s share markets and protect their interest.
Market insiders said that the Wednesday’s fall was triggered by the offloading of stocks by some institutional investors, who were reportedly seeking cash to adjust the negative balance in the accounts of their clients.
“Panic sell was the reason for the fall of the market,” said Akter H Sannamat, managing director of the Prime Finance and Investment Ltd.
However, there are other versions. Some investors alleged that some big players had been responsible for the fall in stock prices for the last three consecutive days.
The broader DSE All Shares Price Index (DSI) lost 104.71 points or 1.47 per cent to end at 7001.16, while the DSE 20 blue chip index shed 80.88 points or 1.56 per cent to end at 5116.42.
Almost all the sectors lost on the day—banks lost 1.81 per cent, non banking financial institutions 1.58 per cent, fuel & power 1.48 per cent, Pharmaceuticals 1.02 per cent and general insurance 2.29 per cent.
Total turnover on Wednesday declined to 19.7 billion from the previous session’s Tk 20.50 billion. Out of 241 issues traded, only 58 advanced, 178 declined and five remained unchanged.
AB Bank topped the turnover list with shares worth Tk 1.10 billion changing hands.
The other turnover leaders were Southeast Bank, UCBL, Titas Gas, National Bank, Beximco Limited, NCC Bank, Shahjalal Bank, Pubali Bank and City Bank.
The prominent losers included Sonali Aansh, Gemini Sea Food, Desh Garment, Stylecraft Ltd, Janata Insurance, Standard Ceramic, Reliance Insurance, Phoenix Insurance, Asia Pacific Insurance and Apex Spinning.
Savar Refractories was the highest gainer posting a rise of 14.98 per cent followed by BSC, Pharma Aid, Monno Jute Stafflers, ICB First NRB, ICB First AMCL first Mutual Fund, Miracle Industries, Ambee Pharma, Meghna Pet and Aziz Pipes.
