Angry investors of the Dhaka Stock Exchange (DSE) took to the streets once again Monday in protest against the continuous fall of stock prices that halted traffic in the city's business hub Motijheel area for about three hours.
The benchmark General Index of the DSE plunged 97.11 points or 1.61 per cent to close at 5,920.84 and the DGEN come down below 6,000 points mark since June 28. With Monday's sink, the DSE fell for the third straight sessions.
The agitating investors came out of different brokerage houses and gathered in front of the DSE main building at about 12:30pm, as the general index of the DSE plunged 97 points.
They brought out a procession and staged demonstration, blocking the main road in front of the DSE. The aggrieved investors also set fire to tire, wood and paper in front of the DSE building.
The small investors threatened to boycott the market if the situation is not improved immediately. They also declared a sit-in programme in front of the DSE building today (Tuesday).
The investors under the banner of 'Investors Unity Council' also threatened to seize the Bangladesh Bank and the Securities and Exchange Commission (SEC) today (Tuesday).
The traffic movement on the busy road from Shapla Chattar to Ittefaq intersection remained suspended for nearly three hours from 1pm to 4pm, causing huge tailbacks on bustling streets of the capital's commercial hub Motijheel due to demonstration.
The aggrieved investors chanted slogan against Finance Minister AMA Muhith, Bangladesh Bank Governor Dr Atiur Rahman and President of the DSE Shakil Rizvi.
They also demanded resignation of the bigwigs alleging that they failed to take effective measures to stablise the market.
The demonstrators also sought immediate intervention of Prime Minister Sheikh Hasina to restore normalcy in the market.
Additional members of law-enforcing agencies rushed to spot and brought the situation under control without any untoward incidents.
The protesters also threatened to go for tougher movement if the government fails to bring normalcy back in the capital market immediately.
Market analysts blamed central bank's recent measures to control the liquidity flow in the banking system responsible for the recent fall.
In an effort to contain inflation, the central bank recently increased key policy interest rate for banks by 50 basis points. It was also aimed at stopping credit-flow to non-productive sectors.
Professor Mahmood Osmam Imam, a finance teacher at Dhaka University, said "Investors are selling off shares out of panic as they are suffering from lack of confidence."
Right now the liquidity crisis is the main concern for the market and the government should address it immediately, Mr Imam mentioned.
"The market will not be stabilised unless the liquidity flow to the market is increased, as it is facing severe liquidity crisis which also dampened investors' confidence," Mr Imam commented.
He also blamed the merchant bankers for the present situation as they are not playing their due role in the crisis moment of the market.
Mr Imam said the government should take long-term policy to stablise the market in the long run.
Sunday's meeting held between DSE board of directors and top 30 brokers to ensure institutional investors' support and greater participation apparently fell well short of improving sentiment, said a stock broker.
Daily price action of the major indices continue to reflect a lack of optimism amongst market participants with no perceptible improvement in the daily trade value as market continues to feel the pinch of liquidity crunch, he added.
The day's turnover value, however, improved slightly to Tk 3.14 billion against Tk 2.83 billion in the previous session.
The broader All Shares Price Index (DSI) shed 80.84 points or 1.60 per cent to close at 4,956.05. The DSE-20 Index comprising blue-chip shares also plunged 46.22 points or 1.12 per cent to close at 4,050.12.
A total of 35.56 million shares changed hands on the day against 34.48 million in the previous session. The trade deals also increased to 81,057 against Sunday's 72,504.
Total market capitalisation of the DSE, however, declined to Tk 2,836.48 billion against Tk 2,874.12 billion in the previous session.
Out of 256 issues traded, only 34 advanced, 214 declined and eight remained unchanged.
Most share prices of all the major sectors, including banks, insurance, financial institutions and fuel and power suffered losses.
Banking sector lost 1.60 per cent, whereas NBFIs, insurance and fuel and power sectors declined by 1.90 per cent, 2.0 per cent and 0.90 per cent respectively.
Other prominent sectors like pharma and textiles lost 1.40 per cent and 2.50 per cent respectively.
Titas Gas topped the turnover list with shares worth Tk 142.12 million changed hands.
The other turnover leaders were Lafarge Surma Cement, Beximco Limited, Grameenphone, CMC Kamal, UCBL, Square Pharma, MI Cement, Malek Spinning and ONE Bank.
Phoenix First Mutual Fund was the day's highest gainer posting a rise of 3.44 per cent.
It was followed by Tallu Spinning, Apex Spinning, Eastern Lubricants, National Housing Finance, Sixth ICB, BOC, Heidelberg Cement, Rupali Bank and Pharma Aid.
The day's worst losers included ICB AMCL Islamic Mutual Fund, Saiham Textile, Monno Stafflers, Second ICB, Rahim Textile, Meghna Pet, Phoenix Insurance, Confidence Cement, Monno Ceramics and Reliance Insurance.
The benchmark General Index of the DSE plunged 97.11 points or 1.61 per cent to close at 5,920.84 and the DGEN come down below 6,000 points mark since June 28. With Monday's sink, the DSE fell for the third straight sessions.
The agitating investors came out of different brokerage houses and gathered in front of the DSE main building at about 12:30pm, as the general index of the DSE plunged 97 points.
They brought out a procession and staged demonstration, blocking the main road in front of the DSE. The aggrieved investors also set fire to tire, wood and paper in front of the DSE building.
The small investors threatened to boycott the market if the situation is not improved immediately. They also declared a sit-in programme in front of the DSE building today (Tuesday).
The investors under the banner of 'Investors Unity Council' also threatened to seize the Bangladesh Bank and the Securities and Exchange Commission (SEC) today (Tuesday).
The traffic movement on the busy road from Shapla Chattar to Ittefaq intersection remained suspended for nearly three hours from 1pm to 4pm, causing huge tailbacks on bustling streets of the capital's commercial hub Motijheel due to demonstration.
The aggrieved investors chanted slogan against Finance Minister AMA Muhith, Bangladesh Bank Governor Dr Atiur Rahman and President of the DSE Shakil Rizvi.
They also demanded resignation of the bigwigs alleging that they failed to take effective measures to stablise the market.
The demonstrators also sought immediate intervention of Prime Minister Sheikh Hasina to restore normalcy in the market.
Additional members of law-enforcing agencies rushed to spot and brought the situation under control without any untoward incidents.
The protesters also threatened to go for tougher movement if the government fails to bring normalcy back in the capital market immediately.
Market analysts blamed central bank's recent measures to control the liquidity flow in the banking system responsible for the recent fall.
In an effort to contain inflation, the central bank recently increased key policy interest rate for banks by 50 basis points. It was also aimed at stopping credit-flow to non-productive sectors.
Professor Mahmood Osmam Imam, a finance teacher at Dhaka University, said "Investors are selling off shares out of panic as they are suffering from lack of confidence."
Right now the liquidity crisis is the main concern for the market and the government should address it immediately, Mr Imam mentioned.
"The market will not be stabilised unless the liquidity flow to the market is increased, as it is facing severe liquidity crisis which also dampened investors' confidence," Mr Imam commented.
He also blamed the merchant bankers for the present situation as they are not playing their due role in the crisis moment of the market.
Mr Imam said the government should take long-term policy to stablise the market in the long run.
Sunday's meeting held between DSE board of directors and top 30 brokers to ensure institutional investors' support and greater participation apparently fell well short of improving sentiment, said a stock broker.
Daily price action of the major indices continue to reflect a lack of optimism amongst market participants with no perceptible improvement in the daily trade value as market continues to feel the pinch of liquidity crunch, he added.
The day's turnover value, however, improved slightly to Tk 3.14 billion against Tk 2.83 billion in the previous session.
The broader All Shares Price Index (DSI) shed 80.84 points or 1.60 per cent to close at 4,956.05. The DSE-20 Index comprising blue-chip shares also plunged 46.22 points or 1.12 per cent to close at 4,050.12.
A total of 35.56 million shares changed hands on the day against 34.48 million in the previous session. The trade deals also increased to 81,057 against Sunday's 72,504.
Total market capitalisation of the DSE, however, declined to Tk 2,836.48 billion against Tk 2,874.12 billion in the previous session.
Out of 256 issues traded, only 34 advanced, 214 declined and eight remained unchanged.
Most share prices of all the major sectors, including banks, insurance, financial institutions and fuel and power suffered losses.
Banking sector lost 1.60 per cent, whereas NBFIs, insurance and fuel and power sectors declined by 1.90 per cent, 2.0 per cent and 0.90 per cent respectively.
Other prominent sectors like pharma and textiles lost 1.40 per cent and 2.50 per cent respectively.
Titas Gas topped the turnover list with shares worth Tk 142.12 million changed hands.
The other turnover leaders were Lafarge Surma Cement, Beximco Limited, Grameenphone, CMC Kamal, UCBL, Square Pharma, MI Cement, Malek Spinning and ONE Bank.
Phoenix First Mutual Fund was the day's highest gainer posting a rise of 3.44 per cent.
It was followed by Tallu Spinning, Apex Spinning, Eastern Lubricants, National Housing Finance, Sixth ICB, BOC, Heidelberg Cement, Rupali Bank and Pharma Aid.
The day's worst losers included ICB AMCL Islamic Mutual Fund, Saiham Textile, Monno Stafflers, Second ICB, Rahim Textile, Meghna Pet, Phoenix Insurance, Confidence Cement, Monno Ceramics and Reliance Insurance.
Source: FE
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