CSE for strong monitoring as market turns volatile

The port city bourse Thursday requested the securities regulator to intensify monitoring as the capital market witnessed volatility in recent times, officials said.
A delegation of the Chittagong Stock Exchange (CSE) made the plea at a meeting with officials of the Bangladesh Securities and Exchange Commission (BSEC).
CSE chairman Dr. Muhammad Abdul Mazid and managing director, among others, attended the meeting, chaired by BSEC chairman Prof. M Khairul Hossain.
A senior CSE official who attended the meeting said that the CSE representatives laid stress on finding out the reasons behind the recent ups and down.
"The CSE told the policy makers that there might be some inherent weaknesses in the market monitoring system responsible for irrelevant ups and downs of the capital market. Diagnostic market surveillance should be conducted to spot such weaknesses," said a CSE representative.
He said the CSE would also work to strengthen its market monitoring drive.
At the meeting, the CSE has expressed its concern over the unusual price hike in the newly listed companies.
"According to our study, the market price of six newly companies rose around 20 times the offered prices at the very beginning of listing. But after one month, those prices did not sustain," the CSE representative said.
He said some people might create 'artificial' demand of new shares putting buy orders at high prices on the day of debut trading.
"Other investors get influenced following the buy orders placed at high prices. But once those prices do not sustain, the buyers become losers. Investigation should be conducted to identify those buyers who influence the market price of the newly listed companies," said the CSE representative.
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