Stock prices plunge due to SEC's intervention

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Stocks plunged Monday due to the capital market watchdog's directive that sent five companies to the spot market to trade, reports bdnews24.com.
The Securities and Exchange Commission (SEC) also suspended financial adjustment facilities for B, G and N shares to rein in a steady surge.
"It has lost its pace after the SEC instruction. We have to observe the trend for the next couple of days," said Yawer Sayeed, Chief Executive of AIMS of Bangladesh.
The SEC directed trading of shares of AB Bank, Power Grid Company of Bangladesh, Summit Power, DESCO and BRAC Bank on the spot market. The directive took effect from Monday.
It also withdrew the money adjustment facility, a facility that allows investors to buy a share the same day with the money they get from selling another.
The SEC also suspended financial adjustment facilities for the B, G and N shares, to be effective from July 29.
"It's an intervention. Its results will show us whether such intervention is good or bad," said Imtiyaz Husain, chairman of Imtiyaz Husain Securities.
The DGEN or general index shed 42.27 points or 1.76 per cent to 2355.90. The DSI or all-share price index lost 32.31 points or 1.66 per cent to 1913.43. The DSE-20 blue-chip ended almost flat at 2143.97, down 0.52 points or 0.02 per cent.
Turnover on the bourse also fell to Tk 1.78 billion from its historic high at Tk 2.75 billion Sunday.
Meanwhile, all the major indices on the Chittagong Stock Exchange (CSE) ended downbeat amid a sharp fall in turnover and prices of issues.
Turnover on the CSE declined to Tk 279.71 million from Tk 478.25 million. Of the issues traded, 33 gained, 68 lost and nine held steady on the CSE.
On the DSE, Square Pharma emerged as the leader in turnover at Tk 145.68 million. It gained 1.93 per cent to Tk 4894.75 on buying pressure.
BRAC Bank, with its trading directed to the spot market by the SEC, ended next to Square Pharma in turnover. BRAC dropped 6.96 per cent to Tk 898.75.
Profit-taking drove Southeast Bank to finish 2.89 per cent lower at Tk 561.75.
EXIM Bank fell 1.54 per cent to Tk 429.5. Pubali Bank declined 2.58 per cent to Tk 885.75.