Stock prices plunge 2.57pc

---

FE Report Share prices at the Dhaka Stock Exchange (DSE) plunged 2.57 per cent Wednesday, ignoring the latest proposal of the Bankers Association of Bangladesh (BAB) to float a Tk 50 billion market stabilisation fund. The sharp decline prompted a section of investors to take to the streets and stage demonstration in front of the DSE building at the business district of Motijheel. At the end of the day's trading, the DGEN lost 143.29 points or 2.57 per cent to close at 5,411.99. The losers thrashed the gainers, as out of the 257 issues traded, only 13 advanced, 237 declined and seven remained unchanged, while the turnover value came down to Tk 3.43 billion. However, traffic movement from Shapla Chattar to Ittefaq intersection was normal, as additional police and RAB personnel were deployed in the area. The investors, under the banner of Bangladesh Share Market Investors Unity Council (BSMIUC), alleged that some big market players and gamblers were responsible for the continuous slump of the market. They urged the government to look into the matter immediately. The investors alleged that the World Bank (WB) and the International Monetary Fund (IMF) were controlling the national economy, creating a negative impact on the share market. They also chanted slogans against the finance minister, the central bank governor, and the DSE president, and demanded their immediate resignation. They said the government should investigate whether any vested quarters were involved in the recent share price fall. BSMIUC president A K M Mizan-Ur-Rashid Chowdhury said earlier different stakeholders, including the private commercial banks, assured the investors of stabilising the market through their active participation. However, in reality, there is no reflection of those assurances in the market. He also sought immediate intervention of Prime Minister Sheikh Hasina to bring back normalcy in the market and stabilise it. "We sought direct intervention of the Prime Minister to stabilise the market," said Mr Rashid. Market insiders said share prices plunged during the recent weeks due to lack of confidence among the investors, absence of institutional participation, and liquidity crunch. The market has not been able come out of the declining trend despite repeated assurances from the regulator, the banks and different stakeholders, as most of the assurances are yet to be implemented. The investors became more panicked, as the WB and the IMF advised the banks not to get involved further in the capital market, stock brokers said. The WB expressed its concern about formation of a special fund to salvage the plunging market, saying it will raise the banks' liabilities. The IMF also questioned about the formation of a stock market stabilisation fund.