Stock plunge triggers protests

Dhaka shares plunged 3.49 per cent to seven weeks low Monday with the benchmark index falling below 6,000 mark, sparking violent protests by investors in front of the Dhaka Stock Exchange building. The protesters hit the streets for the first time in two months after the DGEN --- the market barometer --- shed more than 2.0 per cent or 138 points in the first 90 minutes of trading. Riot police swung into actions, using batons to break up the protesters who barricaded the main roads leading to the Motijheel Commercial Area, smashed motorbikes, torched tyres and office furniture to vent their anger. Police said transport movement at the busy area came to a halt for about two hours as investors staged demonstrations occupying the key road between Shapla Chttar and the Ittefaq crossing. They chanted slogans against the authorities, demanding resignation of the finance minister, Securities and Exchange Commission chief and the Bangladesh Bank governor. Market sentiment was hit in recent days by the events set off by the stock scam report submitted two weeks back. The DGEN lost four straight sessions last week, before gaining ground on Thursday. The DSE General Index (DGEN Index) declined throughout the session to close at 5,863.98 points, losing 212.34 points or 3.49 per cent, the lowest mark since March 7. The broader All Shares Price Index plunged 3.44 per cent or 173.79 points to 4,879.30 points and the blue-chips DSE 20 Index sagged 2.36 per cent or 90.06 points to close at 3,719.67. The investors have demanded publication of the probe report and stern government action against the market manipulators. They also questioned the sincerity of the finance minister in making the report public. "It was the government that formed the probe committee. Then what makes the finance minister to depend on the opinion of SEC and central bank to publish the report?" Akmol Hossain, who demonstrated at Motijheel, said. Salahuddin Ahmed Khan, a finance teacher at Dhaka University, said uncertainty over the share scam report publication and lack of action against the fraudsters have confused the investors. "They want a clear government stand on the probe report. The attempts to make the probe committee's findings controversial also have angered them," he said, urging the authorities to clear the air over the fate of the findings. Mirza AB Azizul Islam, former finance adviser of the caretaker government, said the investors are shaky and feeling insecure regarding the probe report. "The investors are frustrated and anxious about the fate of the probe report. A feeling of hopelessness has gripped the market for some days," said Mr Aziz, also a former SEC chairman. He added the recent fall in stock prices don't reflect the fundamentals. "I don't think the DGEN should dive below 6,000," he added. Nervous investors dumped shares amid speculation that the bearish trend may prolong for weeks, said a leading merchant banker. All sectors bled red on the day with insurance sector suffering the most. General and life insurers lost 5.18 per cent and 3.37 per cent respectively. Among the major sectors, banks dived 3.08 per cent, NBFIs lost 4.95 per cent, telecommunications 4.49 per cent and fuel and power 1.95 per cent. Textiles shed 5.19 per cent, ceramics 4.82 per cent, pharmaceuticals 3.34 per cent, mutual funds 2.50 per cent, tanneries 1.40 per cent. Beximco Limited topped the turnover list with share worth Tk 556.81 million changing hands. Other turnover leaders were Bextex Limited, United Airways, Titas Gas, Aftab Automobiles, DESCO, Shinepukur Ceramics, Olymics, Malek Spinning and BSRM Steels. A total of 61.31million shares changed hands on the day against 67.17 million in the previous session. Total trade deals declined to 137,812 against 140,538 in the previous session. Total market capitalization stood at Tk 2,672.98 billion against Tk 2,755.06 billion in the previous session. The losers took strong lead over the gainers as out of 251 issues traded, only 11 advanced, 237 declined and three remained unchanged. The daily turnover slightly decreased and stood at Tk 6.13 billion in value terms against Sunday's Tk 6.31 billion. Delta Brac Housing Finance Corp. Ltd was the day's top gainer posting 4.61 per cent rise. It was followed by Reckitt Benckiser (Bd.) Ltd, IFIC, Golden Sons and BATBC. Marico Bangladesh Limited was the day's top loser. The company lost 10.21 per cent following its modest corporate declaration of 20 per cent cash dividend. It was followed by Takaful Insurance, BD Finance, UCBL, Prime Insurance, Prime Finance, Bextex, Phoenix Insurance, Saiham Textile and Sonargaon Textile.