 | Investors nervous as stocks plunge
25 December, 2010
The Dhaka Stock Exchange (DSE) experienced extreme volatility and bearish trend in the week that ended Thursday, as liquidity shortage hit both stock market and the banks.
The call money rate hit 180 per cent on Sunday, a record for the country's money market, and coincidentally, the DSE suffered the biggest-ever fall on the same day.
On the day, the DSE General Index (DGEN) nose-dived by 551.77 points or 6.72 per cent, beating the previous record fall of 3.32 per cent or 284.78 points, set on December 12.
Angry investors took to the streets in Motijheel for the second time, which forced the Securities and Exchange Commission (SEC) to take steps to reverse the market trend.
Market insiders blamed the fall on the central bank's measures to control the liquidity flow in the banking system. In an effort to contain inflation, the central bank recently increased the Cash Reserve Ratio (CRR) for banks to 6.0 per cent, which affected the stock market.
The regulatory body increased the margin loan ratio from 1:1 to 1:1.5, suspended the much-debated NAV-based margin loan calculation and execution of order relating to increased margin deposit by brokerage houses, and restored normal trading of Grameenphone and Marico on the day.
Release link:http://www.thefinancialexpress-bd.com/more.php?news_id=120933&date=2010-12-25
|
|
|
