Dhaka stocks plunged on Tuesday as nervous investors went for heavy sell-offs as uncertainty about the government move to restructure the Securities and Exchange Commission intensified.
Besides, confusion among the investors also deepened over the rumours about possible delay in floating the Tk 5,000 crore Bangladesh Fund and introduction of tax on capital gain, said market operators.
The benchmark general index of Dhaka Stock Exchange, or DGEN, shed 125.67 points, or 2.09 per cent, to close at 5,865.70 points in volatile trading on Tuesday.
After the finance minister made public the probe report on January's stock market debacle and announced that the SEC would be restructured on Saturday, the DGEN lost 184 points in two days.
Turnover of the DSE also dropped by Tk 56 crore to Tk 453.04 crore on Tuesday.
Market operators said the general investors on Tuesday became nervous as a news spread that the appointment of the new SEC chairman would be delayed as the high ups in the government are in a disagreement about recruiting the new SEC chairman, replacing Ziaul Haque Khandakar.
The probe report recommended for ousting Ziaul and the finance minister on Saturday announced that the new SEC chairman would be appointed within two to four days.
'There is a lot of speculation in the market as to who will be the new chairman of the SEC. Besides, there is rumour that Ziaul might continue as SEC chairman as some government high ups want him to stay,' said an official of a brokerage house.
Market operators said the delay over submitting the registered trust deed of Bangladesh Fund by the Investment Corporation of Bangladesh also made the investors pessimistic about the future growth of the market.
Market insiders, however, said that the institutional investors on the day were inactive and some of them went for sell-offs.
A stock broker said that some investors were also jittery over the rumour that the government would introduce tax on capital gain in the share market and make the use of tax identification number mandatory while opening beneficiary owner's account.
Out of 248 traded issues, only 30 advanced while 207 declined heavily and 11 remained unchanged on Tuesday.
Salahuddin Ahmed Khan, a finance teacher of Dhaka University, said, 'Today's fall was in continuation of the previous day.'
'As there is a possible government move about restricting its officials of the concerned agencies it may have an impact on the market.'
'Liquidity crunch of the institutions and CPD's [Centre for Policy Dialogue ] recommendations on introducing tax on capital gain and TIN for BO accounts also de-motivated the institutional investors,' he said.
Source: New Age
