failed recovery attempts
According to insiders, in an effort to keep the situation under control, the regulator called up top executives of various brokerage houses and merchant banks and asked them to reduce share sales. However, they are no longer trying to drive the market.
BSEC Executive Director Mohammad Rezaul Karim said, “We want to let the market move at its own pace. Given the extent of the decline, we expect a turnaround based on its intrinsic strength, as share prices of many good companies have fallen to low value levels. Instead of artificially propping up the market, we have strengthened the monitoring system.
He also promised that immediate action would be taken if anyone deliberately tries to manipulate the market.
According to market insiders, while reputable stocks are falling, share prices of underperforming companies are being brought up through manipulation. This is a major factor contributing to the loss of investor interest in the market.
The regulator did not take any action against the continued increase of low-quality stocks.