Dhaka stocks connected to collapse on Sunday with the bourse’s accepted basis hitting 10-month low as abashed retail investors went for abundant sell-offs for the fourth day.
The government on the day afresh asked four state-run banks and the Advance Corporation of Bangladesh to acquirement shares to stabiles the bazaar but the charge had little impact on the day’s trading.
The accepted basis of the Dhaka Stock Exchange burst by 337.58 points, or 5.81 percent, to abutting at 10-month low at 5463.35 credibility on the day. The DGEN was at 5467.12 credibility on April, 18, 2010.
The DGEN afford a massive 926 credibility in aftermost four trading canicule as agitation advance amid accepted investors while institutional investors took a wait-and-see action to see the DGEN abatement added to acquirement shares at cheaper rates.
The DGEN, which started to wobble in December aftermost year afterwards ample investors like banks and added banking institutions larboard the bazaar demography huge profits, accept so far absent 3455 credibility or 38.80 percent back it hit almanac 8918.51 credibility on December 5, 2010.
The bazaar capitalization additionally alone by a whopping Tk 1,16,784 crore to angle at Tk 2,51287 crore on Sunday from Tk 368071 crore on December 5, 2010 as basic of abounding of the retail investors wiped out.
On Sunday, the bourse absent 140 credibility in bristles account as the attic opened while afraid investors connected with sell-offs to leave the bazaar with whatever they accept fearing added crash.
During the trading hours, the DSE acquaint a account on its website that said the government afresh ordered four state-run banks and the Advance Corporation of Bangladesh to buy shares from the balance bazaar as a admeasurement to stabilise the market.
But the circadian about-face at the burse fell added to Tk 501.27 crore on Sunday from Tk 559.25 crore on Thursday.
The aplomb of the investors hit the everyman ebb and as a aftereffect acceptable allotment acknowledgment by two non-bank banking institutions resulted in the attempt of allotment prices of the companies as the bazaar lacked buyers for best of the issues.
Out of the absolute 255 issues traded on the day, prices of 249 issues plunged while alone 6 advanced.
The retail investors, however, bidding their absolute affliction afterward the advertisement of the government that the banks had been asked to buy shares.
They termed the government’s directives as ‘mockery’ and questioned their artlessness in adjustment to stabilise the market.
‘It assume the government is adequate to accomplish us fools as we accepted ourselves abundant brainless to accept them,’ Anwar, a retail investors, shrugged.
The investors accursed the government for the abandoned words as government promises time and afresh resulted in absolute disappointment amid them.
Lutfar Rahman, one broker in advanced of the DSE building, said, ‘The banks do not alike affliction about those orders as it comes from such abandoned authority’.
Earlier on the additional anniversary of the month, the government had issued agnate orders to the institutions as a deathwatch up alarm afterward the acute beef by the investors. The government additionally allocated a Tk 200 bulk armamentarium to the ICB to buy shares from the market.
But in the aftermost week, the DGEN had absent 125.41 points, or 2.12 percent on the week. The crumbling blueprint brought back.