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Investors continue protests against stock market slump

  • Published at 04:11 pm April 11th, 2019
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File photo of Bangladesh Securities and Exchange Commission Office in Dhaka Syed Zakir Hossain/Dhaka Tribune

BSEC is taking steps in favour of the issuer companies only, they allege

Investors continued their protests for the third consecutive day on Wednesday against continued fall of key indices at stock markets. 

During their demonstration in front of the Dhaka and Chittagong Stock Exchanges, they alleged that the government appointed M Khairul Hossain as chairman of the Bangladesh Securities and Exchange Commission (BSEC) to protect the interests of investors but all steps BSEC took were in favour of the listed companies only.

After the trade session at 2:30pm, small investors held a rally in front of the Dhaka Stock Exchange building at Motijheel under the banner of Bangladesh Pujibazar Biniogkari Oikya Parishad.

They demanded resignation of M Kairul Hossain for what they called his failure to protect the investors’ rights.    

The capital bourse of the country kept accelerating its back gear for the fourth consecutive sessions and dropped below the 5300 line of DSEX broad index. Investors lost their confidence which caused the turnover to decrease.

The day’s turnover was the lowest of this year and the investors were tense as the non-food inflation increased recently.

Moreover, the enhancement of interest rate against deposits might have influenced many investors to invest in the money market, rather than the stock market, says an EBL Securities Limited analysis. 

Meanwhile, market turnover decreased and stood at Tk270 crore and the core index closed at 5,261.6 points with a loss of 57.1points.

In the last two months, DSEX, the benchmark index of the Dhaka Stock Exchange, shed about 500 points. 

During this period, the prime bourse market capitalization lost about Tk18329 crore. Yesterday, the capitalization stood at Tk392895 crore, which was Tk4,15,658 crore on February 3.

Meanwhile, the port city bourse CSE also closed in red zone yesterday. CSCX and CASPI decreased by 99.5 and 165.2 points respectively.

Investors have demanded closure of the 'Z' category or OTC market in the share market.

Pujibazar Biniogkari Oikya Parishad president Mizan-ur-Rashid Chowdhury said that the Investment Corporation of Bangladesh (ICB) was inactive as regard the purchase of shares in the current situation of the stock market. He demanded investigation into the matter.

“Share prices of 76 listed companies are currently below the face value. But as the regulatory body, the BSEC is not taking any action against them,” he added. 

The Parishad president said that the government appointed Khairul Hossain as chairman of the BSEC in order to protect the interests of the investors, not to think only about the interest of the listed companies. 

He warned that they would go for tougher programs if BSEC took no initiatives to address their demands.    

The Parishad publicity secretary Mizanur Rahman said that pre-IPO placement must be closed and demanded that share locking be suspended for at least two years.

“A group is manipulating the market to lower the prices and steal money. Small investors are facing massive losses,” he alleged, demanding a probe to identify the perpetrators.

Investors also demanded that the prime minister needs intervention to strengthen the market for the country's economy and the people.