 | DSE sees steepest ever fall in stock prices
20 December, 2010
Stock prices at the country's main bourse -- the Dhaka Stock Exchange (DSE) -- witnessed Sunday the steepest ever single-day fall -- 551 points or 6.71 per cent, forcing angry retail investors to stage rowdy street protests in Dhaka and some other district towns.
With market indices nose-diving soon after the start of the day's trading at the DSE, angry investors came out of the brokerage houses, blocked the main street and, at one stage, turned mildly violent. They clashed with police, leaving several people, including a photo-journalist, injured. The protesters also demanded resignation of heads of a few national institutions whom they blamed for the stock market debacle. Business activities in the business district Motijheel were disrupted for about two hours until 2.0pm on the day.
Out of 243 issues traded Sunday, only 05 gained, 236 declined and two remained unchanged. Banking and insurance issues were the major losers on the day when total turnover stood at Tk. 14.90 billion, up by 17 per cent compared to that of the last trading session.
Following the massive erosion, the Securities and Exchange Commission (SEC) reversed some of its earlier decision, taken to rein in the soaring market. But those could hardly leave any impact on the sliding stock prices.
The general index (DGEN) at the DSE has lost 2264 points or 25 per cent since December 05 last after hitting the highest ever level-8918. The market shed 547 points within 80 minutes from the start of the day's trading on December 08. But stock prices started regaining mysteriously as a section of investors took to the streets and resorted to violent protests and ended the day with 105 points lower. On December 13, Sunday, the market went through major price correction-285 points. Stock prices at the DSE more than doubled over period of last one year with the active participation of both institutional and general investors.
Market insiders listed the profit taking by banks at the end of their accounting year, liquidity shortage in view of the hike in the rate of CRR (cash reserve requirement) Statutory Liquidity Ratio (SLR) and central bank's instruction relating to banks' exposure to stock market as major reasons for the ongoing erosion in stock prices.
Release link:http://www.thefinancialexpress-bd.com/more.php?news_id=120470&date=2010-12-20
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