Stock index hits 2-year low

Prompts agitating investors to demo in front of SEC
Capital market investors on Monday staged demonstrations on the streets in Motijheel and in front of the Dilkusha office of the Securities and Exchange Commission as the stock prices on the Dhaka bourse went on a free fall and its general index fell to below the 5,000-point-mark for the first time in the past two years on the day. The benchmark general index of Dhaka Stock Exchange, or DGEN, lost 3.26 per cent, or 164.71 points, on Monday to close the day at 4,877.52 points on panic
selling. The index on the previous day shed 3.20 per cent, or 166.72 points.
DGEN had stood at a higher than Monday’s level of 4,876.25 points on January 17, 2010.
As the index had lost about 220 points by around 11:45am on Monday, panic drove investors out of different brokerage houses on the streets.
They halted the traffic on the road from Shapla Square to Ittefaq crossroads and formed a human chain in front of the DSE building. The agitating investors also brought out processions at regular intervals that paraded the road between the DSE building and the Bangladesh Bank head office.
The demonstrating investors blasted finance minister Abul Maal Abdul Muhith  and prime minister’s finance adviser Mashiur Rahman and termed them ‘mentally retarded’ and ‘shameless’.
‘The finance minister has crippled the country’s economy and the capital market by following the advice of the prime minister’s finance adviser,’ said Bangladesh Capital Market Investors’ Council president Mizanur Rashid Chowdhury.
He also alleged that the government had no genuine intention to stabilise the market, adding, ‘if they had, the market might not have improved but it would not have seen the share prices going on such a free fall’.
The demonstrators demanded immediate resignation of Muhith, Mashiur Rahman, Bangladesh Bank governor Atiur Rahman, and DSE president Shakil Rizvi for their failure to stabilise the market.
They also demanded that the government should take steps to force the banks invest in the capital market up to their limit and to start investing in stocks from Tuesday as per their declaration.
Investors’ protest took on a new dimension on Monday as a group of them staged a demonstration in front of the Dilkusha office of the capital market regulator.
The group of investors also met SEC chairman M Khairul Hossain and placed to him a number of demands including suspending share trading until the government came up with a concrete measure to bring stability back to the market.
The SEC chairman told the investors that the commission was also greatly concerned over the relentless fall in stock prices and would do whatever it took to make the situation normal.     
Later in a press briefing, SEC spokesman Saifur Rahman urged the brokerage houses not to force-sell investors’ shares and said the commission would sit with the stakeholder soon.
‘The SEC will sit with the Association of Bankers, Bangladesh on Wednesday to discuss the market situation and how to address its liquidity crisis,’ he said.
In late October, the ABB, a forum of top bankers, announced that the banks would invest in stocks immediately up to their allowable ceiling of 10 per cent of liabilities.
The DSE had been highly volatile in the week before it had closed for Eid vacation, because the investors’ confidence took a sheer plunge as the banks did not participate in the market in line with the announcement they had made of increasing their capital market exposure up to the allowable limit.
Saifur, however, said, ‘Although the index has suffered a sharp fall today, the turnover did rise significantly.’
Turnover of the Dhaka bourse on Monday rose to Tk 321.74 crore compared to that of Tk 206.54 crore in the previous day.
The country’s capital market has been going through a depression for the past 10 months that started with the January crash. The Dhaka bourse had been witnessing a fresh meltdown for the last five weeks as the investors turned panicky, seeing back-to-back market-stabilising measures falling flat on their faces.
Market experts said the investors’ panic intensified as the country’s economic condition at present was in a bad shape.
‘Investors had been hoping that the market would make a positive turn after the nine-day Eid vacation, but the vulnerable economic situation offered them the opposite,’ said Salahiddin Ahmed Khan, a professor of finance at Dhaka University.
He said institutional investors, to whom the retail investors and even the market regulator looked up to, were in a tight spot due to the crisis prevailing in the real economy.  
He also said, ‘The realisation of investors that the government or the banks did not have any new tools to boost the market intensified their panic.’
According to the latest report of the Bangladesh Bureau of Statistics the point-to-point inflation in September stood at 11.97 per cent, while the BB statistics show that the government had borrowed as much as Tk 149.05 billion from the banking system in the first four months of the current fiscal year.

-With New Age input

Related News

Phone producers must preinstall Bijoy app, although users are under no obligation: Jabbar

Business Desk : Preinstallation of Bijoy app on android phones is still mandatory for the importers and manufacturers of the devices, but it is not obligatory for the users to use the Bangla writing software, Telecom Minister Mustafa Jabbar said today. The Bangladesh Telecommunication Regulatory Commission (BTRC) has not changed its stance over the ... Read more

‘Richest 1% seize two-thirds of fresh $42 trillion created since 2020′

Oxfam report says Business Desk : A new Oxfam report shows that the top 1% of the world’s wealthiest people have taken almost two-thirds of the $42 trillion in new wealth that has been created since 2020. This is almost twice as much money as the bottom 99% of the world’s population has. A ... Read more

‘Richest 1% seize two-thirds of fresh $42 trillion created since 2020′

Oxfam report says Business Desk : A new Oxfam report shows that the top 1% of the world’s wealthiest people have taken almost two-thirds of the $42 trillion in new wealth that has been created since 2020. This is almost twice as much money as the bottom 99% of the world’s population has. A ... Read more

Puma extends footprint

Business Desk : The global footwear and apparel giant Puma has opened a flagship store in Chattogram, Bangladesh. With the new one, the total number of showrooms of Puma in Bangladesh rises to four. The brand has three outlets in Dhaka, launched by DBL Group, the franchise partner of Puma in Bangladesh. Bangladeshi cricketer ... Read more

First time gold prices exceed Tk 93,000 per bhori

Business Desk : The Bangladesh Jewellers’ Association (Bajus) has decided to raise gold prices for a third straight week, effective tomorrow. According to a press release issued by Bajus yesterday, the price of one bhori (11.66 grams) of 22-carat gold has increased by 3 percent, to around Tk 93,400, as of today. It said ... Read more

Tk 351 crore apartments, plots sold, booked in REHAB Fair 2022

Business Desk : Flats, plots and commercial spaces worth around Tk 351.16 crore were sold and booked in the 22nd edition of the REHAB Fair, which ended today. Of them, Tk 168 crore came from the sales and booking of flats, Tk 80 crore from plots and Tk 53.73 crore from commercial spaces, according ... Read more

StanChart wins The Banker’s ‘Best Bank award

Business Desk : Standard Chartered Bangladesh was recently named as the “Best Bank in Bangladesh” by The Banker magazine’s Bank of the Year Awards 2022. The Banker provides economic and financial intelligence for the world’s financial sector, combining in-depth regional and country coverage with reports on markets, banking, regulation, risk, transactions and technology and ... Read more

10 new products require BSTI certification

Business Desk : Bangladesh Standards and Testing Institution (BSTI) has added 10 new products to the list of items that need to be certified by the national standards body. The new products are: disposable diapers, facewash, petroleum jelly, flatbread/tortilla, shaving foam or gel, eye care, hair dye liquid, aerosol, shoe polishing and geyser. The ... Read more

Walton introduces hire purchase and family protection

Business Desk : Walton has launched a hire purchase and family protection policy along with a one-stop service solution. SM Mahbubul Alam, managing partner of Walton Plaza, inaugurated the ‘Hire Purchase and Family Protection Policy’, ‘One-stop Service Solution’ and ‘Hire Purchase and Family Protection Week’ at a programme held at Walton Corporate Office in ... Read more

ICAB, auditor general office to exchange knowledge

Business Desk : The Institute of Chartered Accountants of Bangladesh (ICAB) and the Office of the Comptroller and Auditor General (OCAG) of Bangladesh signed a memorandum of understanding (MoU) recently to sharing knowledge by jointly developing and introducing courses and programmes.  The two entities will also work towards developing customised training programmes and disseminating ... Read more

Shahjalal Islami Bank gets first place in 22nd ICAB National Award

Business Desk : Shahjalal Islami Bank has won first position for the best presented annual report-2021 at the 22nd ICAB National Award recently. Mohammed Younus, chairman of the bank, Mosleh Uddin Ahmed, managing director, and Md Jafar Sadeq, chief financial officer, received an award from Commerce Minister Tipu Munshi at Pan Pacific Sonargaon Dhaka, ... Read more

Islami Bank wins ICMAB Best Corporate Award 2021

Business Desk : Islami Bank Bangladesh Limited IBBL won the ICMAB Best Corporate Award 2021 for “Private Commercial Bank (Islamic Operation)”. Commerce Minister Tipu Munshi handed over the award to Muhammad Qaisar Ali, additional managing director of the bank Thursday (1 December) at a ceremony held at Hotel InterContinental Dhaka. JQM Habibullah, additional managing ... Read more

Brac Bank holds fire safety awareness sessions during Fire Service Week

Business Desk : To observe Fire Service Week, Brac Bank held a fire safety awareness event for its people in conjunction with the Fire Service and Civil Defence Department. The bank arranged a fire safety drill at its head office in Dhaka on 17 November, said a press release. The department observes Fire Service ... Read more

Premier Cement Mills PLC obtains ICMAB ‘Gold Award’ for cement manufacturing

Business Desk : Once again, Premier Cement Mills PLC has taken home the Gold in the Cement Manufacturing category at the ICMAB Best Corporate Award 2021. Mohammed Amirul Haque, managing director of Premier Cement Mills PLC, received the award from Commerce Minister Tipu Munshi at a city hotel on 1 December.  Among others Federation ... Read more

IPDC Finance took home “gold” for ICMAB Best Corporate Award 2021

Business Desk : IPDC Finance was honored with the Gold Award in the NBFI category at the ICMAB Best Corporate Award 2021. The awards event took place on Thursday, December 1 at the Intercontinental Dhaka, said a press release issued in this regard. Commerce Minister Tipu Munshi handed over the awards to the recipients as ... Read more

Agora, BD Recycle Technologies to work on solid-waste management 

Business Desk : Agora Limited has recently joined hands with BD Recycle Technologies Limited (BRTL) to work together with the goal of ensuring sustainable solid-waste management. A memorandum of understanding has been signed in this regard, where these two institutions will work towards environmental protection through modernisation of waste management, reads a press release. ... Read more

ICMAB Best Corporate Award goes to 65 firms

Business Desk : A total of 65 businesses were awarded the “Best Corporate Award 2021” by the Institute of Cost and Management Accountants of Bangladesh (ICMAB) for their efforts in establishing corporate governance. After examining each company’s annual report, the ICMAB presented them with honors Thursday night at a local hotel during its annual ... Read more

Meghna Bank to avail mobile financial solution platform

Business Desk : Meghna Bank recently signed a tripartite agreement with ModeFinServer Private and Genex Infosys at the bank’s head office in Gulshan, Dhaka to avail a mobile financial solution platform from the former and provide logistics and localisation support from the latter.  Sohail RK Hussain, managing director of Meghna Bank, Amarnath Chowdhury, managing ... Read more

Citibank NA appoints New Country Officer in Bangladesh

Business Desk : Citibank NA Bangladesh recently appointed a new country officer.  The appointee, Md Moinul Huq, joined Citibank NA in 2002 and previously worked for Al Baraka Bank and Dhaka Bank, said a press release. As country officer, Huq will lead the Citi franchise in Bangladesh and will be responsible for Citi’s business ... Read more

Shwapno establishes new outlet at Aftabnagar Siraj Convention Centre

Business Desk : A new outlet of the retail shop Shwapno was inaugurated at the Siraj Convention Centre in Aftabnagar, Dhaka. An event was held to mark the occasion on Tuesday noon, reads a press release issued in this regard. The programme was attended by landowner Md Siraj, Shwapno Head of Retail Administration Saiful ... Read more