Bleeding in the stock market
The stock market is bleeding. Investors are devastated by the continuous price decline, the liquidity crisis has increased, and new investments are not coming in. The share prices of most companies on the Dhaka Stock Exchange (DSE) have fallen to the bottom, which has had a major impact on the price index and market capitalization. This capital market is unable to break the cycle of manipulation and irregularities. Investors are forced to return home with their capital lost after coming in with the hope of profit.
Analysts say that the crisis of confidence has reached its peak due to the lack of transparency and good governance in the capital market. Investors are selling shares at a loss, which is weakening the market further. It has become difficult to ensure market stability due to the lack of new investment.
Market participants say that the frustration of old investors is spreading to potential investors. As a result, people who are able to invest are not investing in the stock market but are satisfied with the ‘return’ they are getting by buying government savings certificates or keeping deposits in banks.
The CEO of a leading brokerage house, on condition of anonymity, said that all types of investors, small, medium and large, are now disappointed in the market. No one wants to invest new money, but many are accepting losses and leaving the market. The situation is becoming more fragile due to the lack of effective initiatives from the government and regulatory agencies. Investors saw a new ray of hope after the political change last August, but that hope did not materialize. The changed government has also failed to restore investor confidence. Although the main index of the DSE rose by 786 points in the four days after the fall of Sheikh Hasina, it did not last long. The market has returned to its previous position in the next seven months.
The country’s leading brokerage house, LankaBangla Securities, recently showed in a survey that investor confidence in the new leadership of the BSEC has decreased. Only 9 percent of the survey participants have confidence in the current leadership of the BSEC, 49.5 percent have completely lost confidence and 37 percent have partial confidence.
According to market participants, the current BSEC commission is questionable in terms of efficiency and capacity. They do not seem to have taken any effective initiative to bring stability to the stock market. Recently, investors have formed a human chain and rally in Motijheel against the BSEC leadership. Although there is no evidence of financial corruption against the current commission, the market has been stagnant due to their slow decision-making process and weak policies. Market picture: Yesterday, Tuesday, all price indices in the country’s main stock market Dhaka Stock Exchange (DSE) fell, reducing trading in terms of taka. Along with this, the share prices of 267 companies fell. At the end of DSE trading, the main index ‘DSEX’ fell by 26.55 points to 5,194 points. Among other indices, the Shariah index ‘DSES’ fell by 4.7 points to 1,158 points and ‘DS30’ fell by 8.94 points to 1,889 points. A total of 336.82 crore taka shares and units were traded on the DSE. Earlier in the day, shares worth 381.74 crore taka were traded. Of the 396 companies traded, 65 increased in price, 267 decreased, while the market price of 68 companies remained unchanged.
Former BSEC Chairman Faruk Ahmed Siddiqui said that the good governance of the capital market is now questionable. There were allegations of corruption against the last two commissions, which created a crisis of confidence among investors. Many questionable companies have come to the market, which have now become a burden for investors.
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