DSE looks into technical glitch that reduced it by 98pc

BSEC to do separate investigation

FE REPORT | Published: March 10, 2024 23:45:13

The premier bourse of the country has begun a probe to find out why the index lost 98 per cent at the beginning of the Sunday's session and remained so until the trading ended.
The regulator allows correction by maximum 10 per cent of any stock in one day. Hence, it is impossible for the DSE index to be reduced by such a large margin.
But after the session closed, the Dhaka Stock Exchange (DSE) general index DSEX stood at 142 points, down from 6112.
During the same time, the DSE Sharia index DSES fell to 31 points from 1336.
However, the DSE blue-chip index was reduced by only 0.5 per cent to 3084 points, meaning the index did not suffer from any technical glitch.
According to the DSE website, there was an error in adjustment of rights shares of Aamra Networks Limited.
The figure was abnormally inflated into the system, having an impact on the overall index, said a person, who knows the system very well, preferring anonymity.
"It [DSE] is taking time to solve the problem because it did not develop trading software of its own. Rather, it purchases services [from Nasdaq]," he said.
Trading in shares of Aamra Networks was quickly suspended as the authority took notice of the abnormalities.
DSE Managing Director Atm Tariquzzaman told the FE that "This is an operational error."
This is not the first time that the DSE suffered from such a technical problem. There were many incidents of software errors.
BSEC Chairman Shibli Rubayat Ul Islam has repeatedly said flaws in the DSE information technology infrastructure are the main hindrance to the development of the capital market.
Countries, such as India and China, purchased basic software from a German company and then customised it for their own markets.
The DSE in a letter said they sat with Nasdaq to solve the problem.
A three-member investigation team, headed by A.G.M Sattique Ahmed Shah, chief financial officer & chief operating officer (In-charge) of the DSE, will submit a report within three days.
Meanwhile, the Bangladesh Securities and Exchange Commission ordered a separate investigation.
A two-member committee will submit a report within three days to the BSEC.