Angry stock investors want PM to step in
A group of stock investors yesterday handed over a memorandum to the Prime Minister’s Office and called for initiative from the government to revive the market.
The investors also demanded the removal of the chairman and the commissioners of the Bangladesh Securities and Exchange Commission (BSEC), saying they have failed to regulate the market.
In the last six months, the benchmark index of the Dhaka Stock Exchange (DSE) dropped 850 points, wiping out Tk 41,950 crore in market value.
In protest of the market slump, the investors have been demonstrating in front of the DSE for the last six trading days.
The memorandum included the demand to implement a directive of the BSEC that makes it mandatory for the directors of all the listed companies to hold at least 2 percent shares in their companies individually and 30 percent jointly.
The investors urged the directors to buy back the shares whose prices have fallen below the face value.
The demands also include extending the lock-in period to five years from two years now for the placement shareholders of newly listed companies and raising the quota for general investors in the initial public offering to 80 percent from 50 percent.
The investors sought exemption from the interest on margin loans for the affected small investors, who borrowed to invest money in the stock markets between January 2011 and June 2019.
They called for forming a special fund of Tk 10,000 crore to increase the liquidity in the market. The fund should be provided to the investors at 5 percent interest rate.
The memorandum said there should be money whitening opportunity in the stock market and also called for withdrawal of the cases that were filed against the investors on various occasions for taking part in demonstrations.
Yesterday, the DSEX fell 2.43 points, or 0.04 percent, to 5,130.69. Turnover rose 27.7 percent to Tk 395.29 crore.
Of the traded issues, 111 securities advanced, 204 declined and 38 closed unchanged.
Fortune Shoes dominated the turnover chart with 97.69 lakh shares worth Tk 38.84 crore changing hands, followed by Beacon Pharmaceuticals, Sonar Bangla Insurance, Sea Pearl Beach Resort & Spa, and National Polymer Industries.
Sonargaon Textiles was the day’s best performer with 10 percent gain, while Pragati Life Insurance was the worst loser, shedding 10 percent.
Chittagong stocks also fell with the bourse’s benchmark index, CSCX, declining 1.12 points, or 0.01 percent, to finish at 9,558.29.
Losers beat gainers as 150 issues declined, 111 advanced and 25 finished unchanged on the Chittagong Stock Exchange.
The port city bourse traded 73.95 lakh shares and mutual fund units worth
Tk 16.80 crore.
