Investors go berserk as prices slide after SEC decision

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FE Report
The stock prices on the Dhaka Stock Exchange (DSE) dipped Tuesday amid a demonstration staged by the investors in front of the country's prime bourse protesting the Securities and Exchange Commission's (SEC) withdrawal of the financial adjustment facilities.
At least 150 angry small investors gathered in front of the office of the Chief Executive Officer (CEO) of the DSE and protested withdrawal of the facilities of financial adjustment of shares of A, B, G and N categories.
The angry investors said the capital market of the country will fall drastically due to the decisions of the SEC.
When asked, DSE CEO Salahuddin Ahmed Khan said the angry investors gathered in front of his office to inform him about the falling trend of the market.
"I asked them not to be panic. The time is too little to watch any positive impact of the latest decision of the SEC in connection with the financial adjustment," the DSE CEO added.
In the morning share prices of 100 companies fell and only 15 were gainers. Then the small investors took to the street to protest against the SEC action.
Market operators said suspension of the financial adjustment facility Tuesday against trading in A-category securities in the stock market contributed to the price fall of shares.
Earlier on Monday, the SEC sent the directive in this regard to both Dhaka Stock Exchange and Chittagong Stock Exchange. The directive came into effect today (Tuesday).
Earlier, the market watchdog also withdrew the financial adjustment facility against trading in B, N and G category securities with effect from Sunday last.
SEC sources said both the directives were issued to safeguard the interest of the retail investors and the capital market as the SEC considered that the price movements of many of the companies became risky for small investors.
The latest directive was issued in the backdrop of a recent abnormal hike in prices of shares in the market, an SEC source said.