FE Report-February 02,2012 Thursday
Yet another massive plunge in the prices of stocks Wednesday last pulled the general index of the Dhaka Stock Exchange (DGEN) down below the 4000-point mark.
The DGEN plummeted 266.78 points or 6.42 per cent to close at 3,887.18, dipping below 4000-point mark since November 16, 2009.
During most of the trading hours on Wednesday, the DSE website showed zero gainer as there was hardly any company in the gainers' list. However, only four companies gained at last.
About 97 per cent shares lost prices on the day as out of 257 issues traded, only 4 advanced, 249 declined and four remained unchanged.
In the month of January last Dhaka stocks lost 1,464.56 points, as it started with 5,351.74 points on January 1 and stood at 3,887.18 points on February 1.
With their frustration soaring at a new height by the massive plunge, a group of investors tried to stage demonstration in front of the DSE to vent their anger, but police foiled their attempts. A large contingent of police was deployed in the area to avert any untoward incident.
Later, the aggrieved investors tried to stage demonstration in front of the Securities and Exchange Commission (SEC), but police kept them at bay.
On November 16, 2009, the DGEN skyrocketed by more than 764 points, or 22 per cent when Grameenphone (GP) made debut as GP alone added 717 points on the day.
With the landmark jump in the key indices, the DGEN crossed 4,000-mark for the first time and finally closed at 4,148.11 points on that day.
Lack of confidence, liquidity problem and rumours were identified as major reasons for the prevailing situation in the market, analysts said.
Investors were upset as there was no effective outcome from Tuesday's meeting and went for selling shares to leave the market, said Akter H Sannamat, former managing director of Prime Finance and Investment.
Meanwhile, the central bank extended the timeframe for adjustment of the single borrower exposure limit of non-banking financial institutions (NBFIs) to December 31, 2013.
It also amended a provision under which long-term investment of NBFIs in their subsidiaries will not be treated as exposure to the capital market.
These steps should allow NBFIs to increase their investment in the stock market. However, the central bank action did not have any impact on the market for reasons of acute shortage of liquidity.
Yet another massive plunge in the prices of stocks Wednesday last pulled the general index of the Dhaka Stock Exchange (DGEN) down below the 4000-point mark.
The DGEN plummeted 266.78 points or 6.42 per cent to close at 3,887.18, dipping below 4000-point mark since November 16, 2009.
During most of the trading hours on Wednesday, the DSE website showed zero gainer as there was hardly any company in the gainers' list. However, only four companies gained at last.
About 97 per cent shares lost prices on the day as out of 257 issues traded, only 4 advanced, 249 declined and four remained unchanged.
In the month of January last Dhaka stocks lost 1,464.56 points, as it started with 5,351.74 points on January 1 and stood at 3,887.18 points on February 1.
With their frustration soaring at a new height by the massive plunge, a group of investors tried to stage demonstration in front of the DSE to vent their anger, but police foiled their attempts. A large contingent of police was deployed in the area to avert any untoward incident.
Later, the aggrieved investors tried to stage demonstration in front of the Securities and Exchange Commission (SEC), but police kept them at bay.
On November 16, 2009, the DGEN skyrocketed by more than 764 points, or 22 per cent when Grameenphone (GP) made debut as GP alone added 717 points on the day.
With the landmark jump in the key indices, the DGEN crossed 4,000-mark for the first time and finally closed at 4,148.11 points on that day.
Lack of confidence, liquidity problem and rumours were identified as major reasons for the prevailing situation in the market, analysts said.
Investors were upset as there was no effective outcome from Tuesday's meeting and went for selling shares to leave the market, said Akter H Sannamat, former managing director of Prime Finance and Investment.
Meanwhile, the central bank extended the timeframe for adjustment of the single borrower exposure limit of non-banking financial institutions (NBFIs) to December 31, 2013.
It also amended a provision under which long-term investment of NBFIs in their subsidiaries will not be treated as exposure to the capital market.
These steps should allow NBFIs to increase their investment in the stock market. However, the central bank action did not have any impact on the market for reasons of acute shortage of liquidity.
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