SEC warning entails DSE share price fall
Wednesday, 28 November 2007
FE Report
The warning of the Securities and Exchange Commission (SEC) about further cautionary measures to maintain stability of the stock market led to fall of the benchmark DSE General Index (DGEN) by 70.244 points to 3001.192 Tuesday.
Two other indices--All Shares Price Index (DSI) and DSE-20 Index (DS20) of the DSE--also shed 53.079 points and 53.360 points to close at 2543.791 and 2345.381 respectively.
On Monday, the DSE General Index (DGEN), All Shares Price Index (DSI) and DSE-20 Index (DS20) gained 127.040 points, 105.423 points and 77.118 points to close at 3071.436, 2596.870 and 2398.741 respectively.
Given the upward trend of the stock market, the SEC Monday said it would again go tough to rein in the runaway stock market.
"All our previous measures were soft, but this time we will go on hardline, if the irrational behaviour does not stop," a senior executive of the SEC told the FE Monday after the stock market hopped with easing of the SEC restriction on merchant banks' credit facilities to the retail investors.
Monday's 'irrational' surge boosted by the SEC's decision easing the restriction on the credit facilities has worried the small investors, SEC sources said.
"So, we are mulling to go on hardline if the share market behaviour compels us," the SEC senior official said.
He also said the SEC has many tools to maintain stability of the share market and it will apply those in accordance with the market behaviour.
Market operators said the stock prices on the DSE have been going through a massive correction due to frequent SEC directives.
However, on Monday the total turnover dropped to Tk 1.948 billion (194.8 crore) from its previous Tk 2.209 billion. The market capitalisation also declined to Tk 744.108 billion from its previous Tk 757.070 billion.
In a market dominated by the losers, out of 215 traded issues, prices of only 24 gained, 179 declined and 12 remained unchanged.
The warning of the Securities and Exchange Commission (SEC) about further cautionary measures to maintain stability of the stock market led to fall of the benchmark DSE General Index (DGEN) by 70.244 points to 3001.192 Tuesday.
Two other indices--All Shares Price Index (DSI) and DSE-20 Index (DS20) of the DSE--also shed 53.079 points and 53.360 points to close at 2543.791 and 2345.381 respectively.
On Monday, the DSE General Index (DGEN), All Shares Price Index (DSI) and DSE-20 Index (DS20) gained 127.040 points, 105.423 points and 77.118 points to close at 3071.436, 2596.870 and 2398.741 respectively.
Given the upward trend of the stock market, the SEC Monday said it would again go tough to rein in the runaway stock market.
"All our previous measures were soft, but this time we will go on hardline, if the irrational behaviour does not stop," a senior executive of the SEC told the FE Monday after the stock market hopped with easing of the SEC restriction on merchant banks' credit facilities to the retail investors.
Monday's 'irrational' surge boosted by the SEC's decision easing the restriction on the credit facilities has worried the small investors, SEC sources said.
"So, we are mulling to go on hardline if the share market behaviour compels us," the SEC senior official said.
He also said the SEC has many tools to maintain stability of the share market and it will apply those in accordance with the market behaviour.
Market operators said the stock prices on the DSE have been going through a massive correction due to frequent SEC directives.
However, on Monday the total turnover dropped to Tk 1.948 billion (194.8 crore) from its previous Tk 2.209 billion. The market capitalisation also declined to Tk 744.108 billion from its previous Tk 757.070 billion.
In a market dominated by the losers, out of 215 traded issues, prices of only 24 gained, 179 declined and 12 remained unchanged.