Investors take to streets again protesting fall in stock prices

FE Report

The benchmark index of the Dhaka Stock Exchange (DSE) experienced yet another fall Wednesday, triggering demonstration by aggrieved investors.

The agitated investors came out of different brokerage houses and took to the streets after the DSE General Index (DGEN) slipped more than 200 points at about 2:15pm.

The investors, under the banner of 'Sharebazar Oikkyo Parishad', staged demonstration in front of the DSE Building to protest the unabated erosion in stock prices. Vehicular movement from Shapla Chottor to Ittefaq Crossing remained suspended from 2:45 am to 3:45 am due to the demonstration.

The investors also demanded resignation of the finance minister, the central bank governor and presidents of the two bourses.

The leaders of the Parishad urged the authorities concerned to halt trading at the bourses until the Prime Minister returns home from abroad.

They also announced a sit-in programme in front of the DSE Building from today (Thursday).

According to market insiders, the Wednesday's plunge was mainly fuelled by the media report that the government has not taken any step to punish the share scam culprits so far.

Besides, a persistent liquidity crisis has been dragging down the indices, they added.

DGEN, the DSE's yardstick, ended at 5292.53 points, shedding 151.74 points or 2.78 per cent.

The broader All Shares Price Index (DSI) lost 125.39 points or 2.76 per cent to close at 4409.57. The DSE-20 index, comprising blue-chip shares, lost 69.88 points or 1.94 per cent to 3525.97 points.

The turnover volume, in value terms, stood at Tk 3.24 billion amid lesser participation from the institutional investors.

Regarding the situation, market analyst Yaweer Saeed told the FE that the government had so far failed to take steps against the culprits of the recent stock market scam.

"Even in the case of restructuring the SEC, the government has shown its indifference by not appointing two members of the regulatory body," he further said.

"If you cannot take proper steps, it is hard to create confidence among the general investors," he added.

On the day, the state-owned Titas Gas topped the turnover list, with shares worth Tk 109.78 million changing hands.

Titas Gas informed the DSE that the board of directors of the company has approved the proposal of sale/transfer of the assets of its Brahmanbaria - Ashuganj unit to Bakhrabad Gas Systems Limited at a revised price of over Tk 2.68 billion.

The other turnover leaders of the day were MI Cement, BSRM, Aftab Auto, PLFSL, Bextex, United Air, NBL and Malek Spinning.

All the sectors lost Wednesday, with insurance and textile sectors emerging as the biggest losers. Insurance sector lost 4.56 per cent, and the textile sector 3.23 per cent. Besides, banking sector lost 2.92 per cent.

The top losers of the day included Phoenix Insurance, ICB Islamic Bank, Provati Insurance, Islami Insurance, Hakkani Pulp, Uttara Bank, Sino Bangla, Renwick Jageshwar, ACI Formulation and National Housing and Finance Limited.

Total market capitalisation came down to Tk 2513.35 billion against Tk 2570.37 billion of the previous session.

A total of 39.72 million shares changed hands Wednesday against 38.69 million in the previous session.

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