FE Report-January 31,2012 Tuesday
Stocks returned to the black yesterday buoyed by hopes that positive measures would emerge from an emergency meeting between the regulator and market stakeholders.
The benchmark General Index of Dhaka Stock Exchange closed at 4,286.11 points, after adding 2.46 percent or 1.3.04 points.
The Securities and Exchange Commission sits with the stakeholders today to discuss the current market situation.
Earlier, a 6.77 percent fall in share prices on Sunday prompted the stockmarket regulator to call the emergency meeting.
An emergency meeting will take place at 11:30am today at the SEC, Saifur Rahman, spokesman for the SEC, told The Daily Star.
Representatives of the twin bourses and other stakeholders, including Central Depositary of Bangladesh Limited, Bangladesh Merchant Bankers Association, Investment Corporation of Bangladesh, Bangladesh Association of Banks, Association of Bankers, Bangladesh, asset management companies and top five brokerage houses will attend the meeting.
Top officials of the Dhaka and Chittagong stock exchanges sat at an emergency meeting yesterday at the premier bourse to discuss the market.
Although the market started on a negative note yesterday by declining over 50 points in the first five minutes of trade, it started to gain after the news of the SEC's meeting spread.
“The market has recovered strongly as the SEC asks the market stakeholders to sit on Tuesday to discuss how to stop the market slide,” LankaBangla Securities said in its daily market analysis.
Abu Ahmed, a professor of economics at Dhaka University, said: “The gain was expected but Sunday's fall was unexpected.”
The market crisis deepened because of tight monetary policy, high interest rates and credit shortage, Ahmed said.
He said most of the companies have tendency to show lower earnings a share as the companies' directors had not sold shares at high price. A series of debacles led them to offload shares at low price, he added.
Ahmed said the regulator should work on the 21-point stimulus package to boost investors' confidence.
Turnover on the DSE floor declined 13.4 percent, compared to the previous day. A total of 0.091 lakh trades were executed, generating Tk 226 crore in turnover with 5.56 crore shares and mutual fund units changing hands.
Chittagong Stock Exchange also gained yesterday with the Selective Categories Index gaining 2.71 percent or 211 points, to end the day on 7,999.53.
Stocks returned to the black yesterday buoyed by hopes that positive measures would emerge from an emergency meeting between the regulator and market stakeholders.
The benchmark General Index of Dhaka Stock Exchange closed at 4,286.11 points, after adding 2.46 percent or 1.3.04 points.
The Securities and Exchange Commission sits with the stakeholders today to discuss the current market situation.
Earlier, a 6.77 percent fall in share prices on Sunday prompted the stockmarket regulator to call the emergency meeting.
An emergency meeting will take place at 11:30am today at the SEC, Saifur Rahman, spokesman for the SEC, told The Daily Star.
Representatives of the twin bourses and other stakeholders, including Central Depositary of Bangladesh Limited, Bangladesh Merchant Bankers Association, Investment Corporation of Bangladesh, Bangladesh Association of Banks, Association of Bankers, Bangladesh, asset management companies and top five brokerage houses will attend the meeting.
Top officials of the Dhaka and Chittagong stock exchanges sat at an emergency meeting yesterday at the premier bourse to discuss the market.
Although the market started on a negative note yesterday by declining over 50 points in the first five minutes of trade, it started to gain after the news of the SEC's meeting spread.
“The market has recovered strongly as the SEC asks the market stakeholders to sit on Tuesday to discuss how to stop the market slide,” LankaBangla Securities said in its daily market analysis.
Abu Ahmed, a professor of economics at Dhaka University, said: “The gain was expected but Sunday's fall was unexpected.”
The market crisis deepened because of tight monetary policy, high interest rates and credit shortage, Ahmed said.
He said most of the companies have tendency to show lower earnings a share as the companies' directors had not sold shares at high price. A series of debacles led them to offload shares at low price, he added.
Ahmed said the regulator should work on the 21-point stimulus package to boost investors' confidence.
Turnover on the DSE floor declined 13.4 percent, compared to the previous day. A total of 0.091 lakh trades were executed, generating Tk 226 crore in turnover with 5.56 crore shares and mutual fund units changing hands.
Chittagong Stock Exchange also gained yesterday with the Selective Categories Index gaining 2.71 percent or 211 points, to end the day on 7,999.53.
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