Institutional investors Monday said they will play ‘active role’ to revive investors’ confidence for bringing back normalcy in the capital market, officials said.
Their assurance came at an emergency meeting called by the Bangladesh Securities and Exchange Commission (BSEC) following the continuous free fall of stock prices in recent days.
The representatives of around 20 top brokers and merchant banks attended the meeting held at the BSEC office in the evening.
The broad index Dhaka Stock Exchange (DSE)--DSEX--Monday went down below 4,000 points after a single day fall of 2.16 per cent or 87.54 points to close at 3959.73 points. The DSEX shed around 554 points in last one month amid sell pressure.
Mohammad Saifur Rahman, the BSEC’s spokesperson, said at the meeting the institutional investors stressed on not to spread panic among general investors.
“We called the emergency meeting with institutional investors such as stock brokers and merchant banks. They assured us to provide utmost support required to overcome the ongoing crisis,” said Mohammad Saifur Rahman, also a BSEC executive director.
Rahman said at the meeting institutional investors also put forwarded the demand of reviewing the bank’s exposure to the capital market.
In this regard, the securities regulator said they would sit with Bangladesh Bank (BB) and the ministry of finance (MoF).
“The matter of reviewing the bank’s exposure will be discussed with the high ups of the government, if necessary,” said a representative of a brokerage firm on the condition of anonymity.
Dhaka Stock Exchange (DSE) raised the demand of calculating exposure limit by deducting some portions such as investments made in non-listed securities as per previous directive.
The representatives of LankaBangla Securities, Dhaka Bank Securities, AB Bank Securities, ICB Securities AIBL Securities, City Brokerage, MTB Securities and Shahjalal Bank Securities attended the Monday’s emergency meeting.
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