DSE gains 338 points on PM intervention

FE Report Dhaka stocks soared more than seven per cent Wednesday after three straight sessions' steep fall following the news of an emergency meeting between the Prime Minister and stock stakeholders, as investors were expecting positive outcome from the meeting. Market insiders said the investors went for fresh buying following the news of Prime Minister Sheikh Hasina's meeting with the stakeholders, as they were expecting positive outcome from the meeting which would, according to them, prop up the sagging stock market. Prime Minister Sheikh Hasina called an emergency meeting with stakeholders Wednesday evening at Gono Bhaban to discuss the current stock market situation in the wake of free fall of share prices. "Prime Minister's decision to sit with the key stakeholders of the market in order to restore the investors' confidence attracted the speculative investors to take position," said a leading stock broker. "Most of the investors took position in their favorite stocks in the hope that Prime Minister's meeting will bring fruitful result," mentioned LankaBangla Securities in its daily market commentary. The impact of the news was instantly felt, as the market gained roughly 250 points during the first 10 minutes of trading and continued to rise for the rest of the session as many shares hit day's upper circuit breaker and almost all the shares became seller-less at the end of the trading session. "The market experienced unprecedented buy pressure. Everyone turned into a buyer today (Wednesday)," commented a top dealer. He said the market could have risen further if there had been no circuit breakers on individual stocks. Transaction of most of the shares was suspended automatically after they hit upper threshold of the circuit-breakers. Earlier on Tuesday noon, the Prime Minister summoned the SEC chairman at her office and instructed him to take all necessary measures to stabilise the market. Most of the shares touched their upper circuit breakers limit within first half an hour, slowing down the price spike in the later part of the day's trading. Meanwhile, a section of investors continued their agitation programme in front of the DSE and demanded their representation in the meeting with the Prime Minister. The small investors started demonstration in front of the DSE after the start of trading at 11am Wednesday blocking traffic movement of one side of the busy road of Shapla Square to Ittefaq Intersection that continued until 5:30pm. The market opened with a flying note, gaining more than 240 points within 10 minutes upon resumption of Continued to page 24