FE Report (January 20, 2011)
Thousands of angry investors went on the rampage in the capital's Motijheel area Wednesday protesting the continuous fall in share prices, as the newly introduced 'index circuit breaker' failed to stabilise the stock market.
Within the 90 minutes of the day's start of delayed trading, the benchmark index hit a lower limit by losing 237.77 points or 3.33 per cent, which prompted trading to grind to a halt automatically at the Dhaka Stock Exchange (DSE) caused visibly by the index circuit breaker.
The Wednesday's trading started at 1pm, two hours later than the usual time following the order of SEC.
Earlier in the morning, the Securities and Exchange Commission (SEC) imposed index circuit breaker on DSE, meaning that trading at the bourse would come to an automatic halt if the DGEN gains or loses 225 points.
As the trading was halted with the new rule in force at about 2:30pm, the aggrieved investors came out onto the street from different brokerage houses and set off a street violence that jolted the city's commercial area, leading to sporadic clashes.
By chanting slogans against the top bosses of the bourse and the market regulator, the protestors damaged at least 20 vehicles and threw brickbats and stones at the law enforcers, prompting them to charge batons to maintain order in the bustling financial hub that turned the area into a veritable battlefield.
They also blockaded the approach roads of the area with burning tires, wooden materials and paper in front of Dhaka Stock Exchange (DSE) building, which seriously disrupted traffic movement for more than one hour, causing immense sufferings to city commuters.
Officer-in-Charge of Motijheel Police Station said they charged the protestors with batons to maintain peace in the area as the latter became unruly after the shutdown of trading. "We've stepped up security in the area to avert further trouble," he added.
The investors also urged the government to take effective measures to save the stock market. Many frustrated investors said that they lost almost all of their portfolios in the continuous fall of share prices.
"We don't want violence but the continuous fall has forced us to do so. We want an investor-friendly atmosphere in the capital market," a protestor said.
He also demanded immediate resignation of the high-ups of the regulatory body for their frequent failure to control the market.
Yewar Sayeed, managing director of AIMS Bangladesh, said, "The recent incidents that occurred in the stock market are nothing but a painful and shameful experience for us."
The market opened with a positive note in the morning, gaining more than 45 points within five minutes, but it began to decline amid ups and downs and finally closed 226 points lower.
The benchmark DSE General Index (DGEN) was down by 3.18 per cent or 226.86 points to end at 6913.39.
The broader DSE All Shares Price Index (DSI) ended at 5739.29, shedding 3.14 per cent or 186.29 points. The DSE-20 blue chips index lost 2.21 per cent or 101.03 points to 4471.49.
The benchmark index of the DSE shed 10.11 per cent in the last seven days and it lost 22.48 per cent since the peak on December 5 last year.
Share prices of all the sectors finished in the red on the day.
Turnover stood at only Tk 5.37 billion. Out of 181 issues traded, only five advanced and 176 declined.
However, normal share trading resumes at 11am today (Thursday) and will continue on schedule, the authorities said.
With the Wednesday's halt, the SEC has suspended share trading for the third time and the second day in a row.
On Tuesday, the SEC suspended trading of the DSE and CSE in the wake of a free fall of share prices amid street protests by the investors.
On the day, hundreds of angry investors came out from different brokerage houses and gathered in front of the DSE main building and staged protests against the continuous fall of share prices and chanted slogans against the market regulator and DSE top bosses.
On January 10, the SEC suspended share trading both of the bourses when Dhaka stocks slumped by 660 points or 9.0 per cent and Chittagong stocks by 914 points within 50 minutes of trading, which sparked violent protests by the investors
Thousands of angry investors went on the rampage in the capital's Motijheel area Wednesday protesting the continuous fall in share prices, as the newly introduced 'index circuit breaker' failed to stabilise the stock market.
Within the 90 minutes of the day's start of delayed trading, the benchmark index hit a lower limit by losing 237.77 points or 3.33 per cent, which prompted trading to grind to a halt automatically at the Dhaka Stock Exchange (DSE) caused visibly by the index circuit breaker.
The Wednesday's trading started at 1pm, two hours later than the usual time following the order of SEC.
Earlier in the morning, the Securities and Exchange Commission (SEC) imposed index circuit breaker on DSE, meaning that trading at the bourse would come to an automatic halt if the DGEN gains or loses 225 points.
As the trading was halted with the new rule in force at about 2:30pm, the aggrieved investors came out onto the street from different brokerage houses and set off a street violence that jolted the city's commercial area, leading to sporadic clashes.
By chanting slogans against the top bosses of the bourse and the market regulator, the protestors damaged at least 20 vehicles and threw brickbats and stones at the law enforcers, prompting them to charge batons to maintain order in the bustling financial hub that turned the area into a veritable battlefield.
They also blockaded the approach roads of the area with burning tires, wooden materials and paper in front of Dhaka Stock Exchange (DSE) building, which seriously disrupted traffic movement for more than one hour, causing immense sufferings to city commuters.
Officer-in-Charge of Motijheel Police Station said they charged the protestors with batons to maintain peace in the area as the latter became unruly after the shutdown of trading. "We've stepped up security in the area to avert further trouble," he added.
The investors also urged the government to take effective measures to save the stock market. Many frustrated investors said that they lost almost all of their portfolios in the continuous fall of share prices.
"We don't want violence but the continuous fall has forced us to do so. We want an investor-friendly atmosphere in the capital market," a protestor said.
He also demanded immediate resignation of the high-ups of the regulatory body for their frequent failure to control the market.
Yewar Sayeed, managing director of AIMS Bangladesh, said, "The recent incidents that occurred in the stock market are nothing but a painful and shameful experience for us."
The market opened with a positive note in the morning, gaining more than 45 points within five minutes, but it began to decline amid ups and downs and finally closed 226 points lower.
The benchmark DSE General Index (DGEN) was down by 3.18 per cent or 226.86 points to end at 6913.39.
The broader DSE All Shares Price Index (DSI) ended at 5739.29, shedding 3.14 per cent or 186.29 points. The DSE-20 blue chips index lost 2.21 per cent or 101.03 points to 4471.49.
The benchmark index of the DSE shed 10.11 per cent in the last seven days and it lost 22.48 per cent since the peak on December 5 last year.
Share prices of all the sectors finished in the red on the day.
Turnover stood at only Tk 5.37 billion. Out of 181 issues traded, only five advanced and 176 declined.
However, normal share trading resumes at 11am today (Thursday) and will continue on schedule, the authorities said.
With the Wednesday's halt, the SEC has suspended share trading for the third time and the second day in a row.
On Tuesday, the SEC suspended trading of the DSE and CSE in the wake of a free fall of share prices amid street protests by the investors.
On the day, hundreds of angry investors came out from different brokerage houses and gathered in front of the DSE main building and staged protests against the continuous fall of share prices and chanted slogans against the market regulator and DSE top bosses.
On January 10, the SEC suspended share trading both of the bourses when Dhaka stocks slumped by 660 points or 9.0 per cent and Chittagong stocks by 914 points within 50 minutes of trading, which sparked violent protests by the investors
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