A panic caused by a rumour that some of the heavyweight players were going for massive disinvestment following the news that the Securities and Exchange Commission was preparing to take legal actions against market manipulators during the last stocks debacle pulled down the Dhaka stocks on Monday.
\nThe benchmark general index of the Dhaka Stock Exchange, or DGEN, took a 92.02-point or 1.42 per\u00a0cent\u00a0plunge to close the day at 6,367.59 points. The index lost 128 points on Sunday.
\nThe volatile trading on Monday stretched the bearish market trend to six straight days.
\nA large number of investors became cautious in trading on the day following Sunday\u2019s SEC announcement that it would lodge cases against a number of suspected market manipulators who were behind the January\u2019s stock market crash.
\nThe turnover of the bourse on Monday dropped to Tk 1,005.56 crore, down by Tk 336 crore from that of the previous day.
\nMarket operators said general investors became jittery once again as share prices continued to fall for the past six trading days. They said, although the recent market fall started with a regular price correction, a rumoured move for disinvestment by a number of large investors aggravated the situation in the past two days.
\n\u2018Some big market players might go for heavy selling to pressure the regulator into refraining from taking action against them,\u2019 remarked a stockbroker. He said such a move by the big fishes might also prompt the retail investors to go for heavy selling.
\nThe latest negative trend was initially fuelled by the government move of offloading more shares of the sate-owned enterprises listed with the capital market and poor quarterly disclosures made by a number of banks. The monetary policy for the first half of the current fiscal year announced by the Bangladesh Bank made the situation even worse.
\nInvestors on Monday also expressed their concern at the share prices going into a free fall.
\n\u2018I sold some of my shares today as the latest trend may last long,\u2019 said Harun-ur Rashid, a small investor.\u00a0 If a number of large market players go for disinvestment, the market will fall further, he said.
\nRashid, however, is also of the opinion that the market manipulators should be brought to justice. \u2018We may suffer initially but they should be tried,\u2019 he said.
\nAIMS Bangladesh Ltd managing director Yawar Sayeed said, \u2018If the investors get caught in the cobweb of rumours\u00a0 and go for selling shares, it will only help a vested quarter. So, they should not panic.\u2019
\nHe said a number of moves including the central bank\u2019s monetary policy, the news on possible regulatory actions against market manipulators in a short span of time had pushed the market into volatility but it would not last long.
\nOn Monday the DGEN had fluctuated heavily in the opening hours but it started crawling down from the middle of the session and ended the day in the negative territory.
\nOf the 261 issues traded on Monday, 41 advanced, 207 declined, and 13 remained unchanged.
\nBeximco topped the list of the day\u2019s turnover leaders, with its shares worth Tk 63.26 crore changing hands. The rest on the Top-10 list were RN Spinning, Maksons Spinning, Lafarge Surma Cement, Summit Power, MI Cements, National Bank, MJL Bangladesh, and
\nMalek Spinning.<\/p>\n

-With New Age<\/span> input<\/p>\n","protected":false},"excerpt":{"rendered":"

A panic caused by a rumour that some of the heavyweight players were going for massive disinvestment following the news that the Securities and Exchange Commission was preparing to take legal actions against market manipulators during the last stocks debacle pulled down the Dhaka stocks on Monday. The benchmark general index of the Dhaka Stock … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_editorskit_title_hidden":false,"_editorskit_reading_time":0,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","footnotes":""},"categories":[4],"tags":[4014,444,610,194,435],"yoast_head":"\n