TDS Desk:

Dhaka Stock Exchange tumbled again with the index plummeting 132.3 points on Wednesday, the worst day since the new chairman of Bangladesh Stock Exchange Commission (BSEC) assumed office just two weeks ago.

This also marks the steepest decline in the index in the past nine months of 2024.

Following the resignation of former chairman Shibli Rubayat ul Islam with the fall of the Awami League government, investors had hoped for a restoration of confidence in the market under the new regulatory chief.

However, investors alleged that the new BSECleadership had instead implemented a series of policy changes that 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 Dhaka Stock Exchange (DSE) building in Motijheel, where investors demanded the resignation of the current BSEC chairman.

Since the appointment of the new BSEC chairman, former banker Khondoker Rashed Maqsood, there have been a total of 11 trading days. During this period, the index declined by 343.24 points for six days and increased by 103.1 points for five days.

From the start of trading on Wednesday, a downward trend was evident on the Dhaka Stock Exchange.

As the index continued to fall, at around 11:30 AM, investors gathered in front of the DSE’s old building to hold a human chain under the banner of the Bangladesh Investors Forum.

Forum leaders including its president Mizanur Rashid Chowdhury were present.

Forum’s treasurer Mohammad Sajjadur Rahman demanded that merchant banks affiliated with the stock market should be prevented from participating directly or indirectly.

He emphasised the need to protect the stock market from continued decline and demanded the immediate resignation of the BSEC chairman.

Mohammad Sajjadur Rahman urged the government to establish a “National Stock Exchange” instead of the current two separate stock exchanges, to restore stability in the market.

“We, the investors, feel cornered by the ongoing price drops. We request the government to urgently bring stability back to the stock market,” he said.

Wednesday market

The Dhaka Stock Exchange (DSE) experienced a significant downturn on Wednesday, as investors’ anxiety over regulatory actions led to massive sell offs across the market.

The DSEX, the broad index of the DSE, plunged by 132.3 points, closing at 5,454 points compared to 5,586 points in the previous session.

Two other indices also ended lower with the DSE 30 Index, comprising blue chips, fell 51.33 points to finish at 1,988.02 and the DSE Shariah Index (DSES) lost 32.52 points to close at 1,219.71.

The decline was primarily fueled by a recent crackdown on market manipulation, including a record fine of Tk429 crore imposed on a particular stock, said analysts.

“This firm stance by regulators has left investors jittery, prompting many to liquidate their holdings to prevent further losses in an already struggling portfolio,” stated EBL Securities in its daily market review.

Despite a slight increase in total turnover—up 13.2% to Tk440 crore from Tk389 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%, followed by pharmaceuticals at 14.3% and fuel and power at 8.2%.

However, all sectors reported dismal returns, with jute (-5.4 percent), paper (-4.5 percent), and travel (-3.7 percent) showing the steepest declines.

Out of the 398 issues traded, only 29 advanced while a staggering 347 declined, and 22 remained unchanged, reflecting widespread market pessimism.

The Chittagong Stock Exchange (CSE) 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 issues remained unchanged on the CSE.

The port city’s bourse traded 26.07 lakh shares and mutual fund units with turnover value worth about Tk 5.96 crore.