Crisis in share market January 13, 2011Posted by bdoza in BANGLADESH, ECONOMY, GOVERNANCE.
Tags: CSE, DSE, SEC, Share market
The general index of DSE fell by 600 points or 7.75 percent to 7135 on 10.01.2010 . The general index at CSE fell 1395 points or 6.34 percent . The fall was consecutively for 5 days. Before this, on 19 Dec, 2010 the index fell 552 points or 6.72 percent. In 1996 on 5 Nov the fall was 233 point or approx. 6 point.
The fall created a deep depression among the investors.They took to the streets and tried to protest but in the face of police strong measures they had to retreat. Some of the protesters were also arrested.
The SEC, Bangladesh Bank and the government took measures to thwart the fall. Bangladesh Bank said that there is no liquidity crisis. Some blame on the inconsistent measures of SEC to regulate the market. Some blame the inherent weakness of AL government in managing the share market. In 1996 also after AL came to power share market experienced similar jolts.
The fall makes thousand of the shareholders penniless.
On the following day after the maximum fall, the market showed sharp rise which is also contrary to healthy state of the market. General index of DSE rose to 7512 points regaining 1012 of 1235 points lost in the previous two days. But there was minimum exchanges of shares and the matter seems to be beyond the control of the regulators.
The ordinary citizen had some experience with the share market. But he left it, as to him the market follows no logic. The matter seems to become a gamble and some powerful are stage-managing the whole show.
An ordinary citizen