Stocks suffered deep losses yesterday, marking the market's steepest fall in one and a half months and triggering street protests in the financial district of Motijheel.
With yesterday's big jolt, the benchmark index dropped for a seventh day, the longest run of losses since April 29, 2009, according to Dhaka Stock Exchange data.
The prime bourse's General Index sank 2.74 percent to 6,192 after the market closed an hour earlier to mark the first day of the holy month of Ramadan.
“Investors sitting on profit fiercely sold the shares speculating a further correction in coming sessions,” LankaBangla Securities, a leading stockbroker, said in its daily market analysis.
The stockmarket regulator however urged the investors not to worry or panic. “The SEC is working to protect the greater interest of investors,” said Saifur Rahman, a spokesman for the SEC.
The latest bearish mood was deepened by the news of the regulator's forthcoming action against individual investors allegedly involved in stockmarket manipulation mentioned in a probe committee report.
Filing cases is not out of the ordinary, as the commission often files cases against violators of the securities law, said Rahman.
The market closed negative for the seventh consecutive session as investors' reluctance to invest in new shares persisted, according to Green Delta Securities, another stockbroker.
“Moreover, panic-selling by the investors was another reason behind the slide,” it said.
Although the day began on a positive note, it failed to sustain the climb as panic selling continued to overwhelm indices.
"There is nothing to panic about. It's time for long-term investors to buy shares. I think the market will bounce back soon," said Reaz Islam, chief executive officer of LR Global, an asset management firm, after the markets closed. "It's a market correction.”
Stocks gained through the last month as the government revied an amnesty offer that allows tax evaders to put their undisclosed wealth in equities. Individuals hoarding so-called “black money” can buy stocks with the cash after paying a flat 10 percent tax as penalty.
During a demonstration in Motijheel, the demonstrators demanded an immediate intervention of the prime minister in the market to restore normalcy. They chanted slogans against the finance minister, the Bangladesh Bank governor, the DSE president and the SEC chairman.
Agitated investors alleged that “major market players and gamblers” might have a hand in the continuous market fall and they urged the government to take steps to stabilise the market.
Faruk Ahmed, a small investor, claimed most investors lost their new investment, which they made in previous sessions.A
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