In a turbulent stock market filled with various rumours, the Bangladesh Securities and Exchange Commission (BSEC) experienced the highest index decline of 132.29 points at Dhaka Stock Exchange (DSE) on Wednesday, following its assumption of office on September 18.
This was the largest drop in the index in the past 10 months of 2024.
After the resignation of Shibli Rubayat-Ul Islam as BSEC chairman back in August following the ouster of the Awami League government, investors had hoped for a restoration of confidence in the capital market.
The new commission has instead implemented a series of policy changes that have further destabilised the market. In response, investors took to the streets to protect their investments.
On Wednesday, a human chain and procession were organised in front of the old DSE building in the capital’s Motijheel, where investors demanded the new BSEC chairman’s resignation.
Since the appointment of new BSEC Chairman Khondoker Rashed Maqsood, there have been a total of 11 trading days. During this period, the index declined by 343.24 points on six days, while it increased by 103.1 points on five days.
From the start of trading on Wednesday, a downward trend was evident at DSE. As the index continued to fall, around 11:30am, investors gathered in front of the old DSE building to hold a human chain under the banner of the Bangladesh Investor Forum.
The organisation’s Treasurer Mohammad Sajjadur Rahman said that merchant banks affiliated with the stock market should be prevented from participating directly or indirectly. He stressed that Maqsood must resign immediately to protect the stock market from continued decline.
He also appealed to the government to establish a National Stock Exchange, excluding the two existing stock exchanges, to restore stability in the market.
He further remarked, "We, the investors, feel cornered by the ongoing price drops. We request the government to urgently bring stability back to the stock market."
Market on Wednesday
The DSE experienced a significant downturn on Wednesday, as investor anxiety over regulatory actions led to massive selloffs across the market.
The DSEX, the broad index of the DSE, plummeted by 132.29 points and closed at 5,454 points, down from the previous session’s 5,586 points.
The two other indices also ended sharply lower with the DSE 30 Index, comprising blue chips, plunged 51.33 points to finish at 1,988.02 and the Shariah-based index, DSES, lost 32.52 points to close at 1,219.71.
The decline was primarily fuelled by a recent crackdown on market manipulation, including a record fine of Tk 429 crore imposed on a particular stock. This firm stance by regulators has left investors jittery, prompting many to liquidate their holdings to prevent further losses in an already struggling portfolio, said EBL Securities in its daily market review.
Despite a slight increase in total turnover — up 13.2 per cent to Tk 440 crore from the previous session’s Tk 389 crore, market participation remained tepid as many investors opted to refrain from taking new positions in equities.
The banking sector led the turnover with 25 per cent, followed by pharmaceuticals at 14.3 per cent and fuel and power at 8.2 per cent. However, all sectors reported dismal returns, with jute (-5.4 per cent), paper (-4.5 per cent), and travel (-3.7 per cent) showing the steepest declines.
Out of the 397 issues traded, only 28 advanced while a staggering 344 declined, and 25 remained unchanged on the DSE trading floor, reflecting widespread market pessimism.
The Chittagong Stock Exchange (CSE) on Wednesday also ended sharply lower with the CSE All Share Price Index, CASPI, losing 306.17 points to settle at 15,291.04 and the Selective Categories Index, CSCX, shedding 187.24 points to close at 9,284.61.
Of the issues traded, 177 declined, 24 advanced and 15 remained unchanged at CSE.
The port city bourse traded 2.607 million shares and mutual fund units with a turnover value worth about Tk 5.96 crore.
