SEC devising means to reverse stock market trend
FE Report | Thursday, 21 August 2008
The Securities and Exchange Commission (SEC) Wednesday began a series of meetings with different stakeholders to devise mechanisms to arrest the continued decline in stock prices.
The move came as the prime bourse Dhaka Stock Exchange (DSE) witnessed around 636 points or 20 per cent fall in stock prices as of August 19. The meltdown of Dhaka stocks started on June 1 this year when the main index DGEN was at 3207.89.
The capital market watchdog, being worried over the unabated decline in share prices, decided to hold one-to-one meeting with merchant bankers and leading brokerage houses.
The meetings may continue for two or three days as there are many merchant banks and brokerage houses on the list for one-to-one talks.
'The objective of the meetings is to restore confidence of the investors through taking confidence-building measures as unfortunately they have already suffered a lot,' SEC Executive Director Anwarul Kabir Bhuiyan told reporters.
The commission held separate meetings with AB Bank, Prime Bank, NCC Bank and Multi Securities Wednesday to know their problems and recommendations, he added.
He also said, 'We have arranged separate meetings, because the stakeholders are reluctant to disclose their own problems in front of their counterparts in the interest of their business.'
'After hearing about problems of all stakeholders, the commission will take measures to improve the liquidity situation and also bring back investors' confidence in the market. I hope this will help put the market back on rails,' Bhuiyan added.
When asked how the liquidity can be increased, he replied that the decision would be taken after completion of the meetings.
The separate meetings will be held with Lanka Bangla Finance, Prime Finance and Investment (PFI), Industrial Development Leasing Company of Bangladesh Limited (IDLC), SES Securities, Trust Bank, Shahjalal Bank and Jamuna Bank.
The move came as the prime bourse Dhaka Stock Exchange (DSE) witnessed around 636 points or 20 per cent fall in stock prices as of August 19. The meltdown of Dhaka stocks started on June 1 this year when the main index DGEN was at 3207.89.
The capital market watchdog, being worried over the unabated decline in share prices, decided to hold one-to-one meeting with merchant bankers and leading brokerage houses.
The meetings may continue for two or three days as there are many merchant banks and brokerage houses on the list for one-to-one talks.
'The objective of the meetings is to restore confidence of the investors through taking confidence-building measures as unfortunately they have already suffered a lot,' SEC Executive Director Anwarul Kabir Bhuiyan told reporters.
The commission held separate meetings with AB Bank, Prime Bank, NCC Bank and Multi Securities Wednesday to know their problems and recommendations, he added.
He also said, 'We have arranged separate meetings, because the stakeholders are reluctant to disclose their own problems in front of their counterparts in the interest of their business.'
'After hearing about problems of all stakeholders, the commission will take measures to improve the liquidity situation and also bring back investors' confidence in the market. I hope this will help put the market back on rails,' Bhuiyan added.
When asked how the liquidity can be increased, he replied that the decision would be taken after completion of the meetings.
The separate meetings will be held with Lanka Bangla Finance, Prime Finance and Investment (PFI), Industrial Development Leasing Company of Bangladesh Limited (IDLC), SES Securities, Trust Bank, Shahjalal Bank and Jamuna Bank.