SEC, DSE ask investors not to be panicky
FE Report | Thursday, 17 July 2008
The securities regulator and bourses Wednesday, in a joint meeting, called upon the retail investors not to be panicky on the basis of rumours centreing the market for the last several days.
The meeting also observed that the current downtrend of the market was not for normal correction but for panic selling by the retail investors gripped by the baseless rumours.
The observation came after the key index DGEN lost 101.13 points in the last three straight sessions.
Securities and Exchange Commission (SEC) Chairman Faruq Ahmad Siddiqi, Dhaka Stock Exchange (DSE) President Adul Haque, Senior Vice President Saiful Islam and Chief Executive Officer Salahuddin Ahmed Khan, and other high officials of the Commission were present at the meeting held at the Commission.
"We discussed the present market trend that saw downward for the last three consecutive sessions because of selling spree by mainly retail investors gripped by confusions and rumours," Salahuddin Ahmed Khan told reporters after the meeting.
The meeting urged the retail investors not to be panicky on the basis of rumour as the institutional investors started to buy the stocks cashing in on lower prices, indicating that the market was going to be back on track, he added.
Salahuddin expressed the hope that the market would see upward trend within next two or three days because of institutional participation, considered the major market player.
Anwarul Kabir Bhuiyan, executive director of the SEC, said, "It is the common idea of some people that the Commission only intervenes in the market when it tends to go upward.
He said, "analysing the information we collected we can come to the conclusion that the market slumped in the last three straight sessions due mainly to panic selling by the retail investors on the basis of rumours."
"Please do not be panicky and nervous on the basis of rumours and avoid both selling and buying based on rumours only," he said quoting the SEC chairman.
Terming the fall of the market in the last three days as rumour-based, he said, there are no other reasons but rumours remained rife in the market in the last several days.
However, it is very difficult to find out the source of rumours but the Commission is making its best efforts to find out the rumour-mongers on which some are trying to catch fish in the troubled water, he noted.
The meeting also discussed formulation of a policy to open new branches of the brokerage houses to ensure transparency and accountability in their activities.
Currently 48 applications from DSE brokers are pending before the SEC for permission.
The meeting also observed that the current downtrend of the market was not for normal correction but for panic selling by the retail investors gripped by the baseless rumours.
The observation came after the key index DGEN lost 101.13 points in the last three straight sessions.
Securities and Exchange Commission (SEC) Chairman Faruq Ahmad Siddiqi, Dhaka Stock Exchange (DSE) President Adul Haque, Senior Vice President Saiful Islam and Chief Executive Officer Salahuddin Ahmed Khan, and other high officials of the Commission were present at the meeting held at the Commission.
"We discussed the present market trend that saw downward for the last three consecutive sessions because of selling spree by mainly retail investors gripped by confusions and rumours," Salahuddin Ahmed Khan told reporters after the meeting.
The meeting urged the retail investors not to be panicky on the basis of rumour as the institutional investors started to buy the stocks cashing in on lower prices, indicating that the market was going to be back on track, he added.
Salahuddin expressed the hope that the market would see upward trend within next two or three days because of institutional participation, considered the major market player.
Anwarul Kabir Bhuiyan, executive director of the SEC, said, "It is the common idea of some people that the Commission only intervenes in the market when it tends to go upward.
He said, "analysing the information we collected we can come to the conclusion that the market slumped in the last three straight sessions due mainly to panic selling by the retail investors on the basis of rumours."
"Please do not be panicky and nervous on the basis of rumours and avoid both selling and buying based on rumours only," he said quoting the SEC chairman.
Terming the fall of the market in the last three days as rumour-based, he said, there are no other reasons but rumours remained rife in the market in the last several days.
However, it is very difficult to find out the source of rumours but the Commission is making its best efforts to find out the rumour-mongers on which some are trying to catch fish in the troubled water, he noted.
The meeting also discussed formulation of a policy to open new branches of the brokerage houses to ensure transparency and accountability in their activities.
Currently 48 applications from DSE brokers are pending before the SEC for permission.