Make probe report public to stablise capital market, experts ask govt

Dhaka, April 26: Stock market analysts and experts have blasted the government for its foot-dragging over making January's stock scam report public and taking action based on it.

They observed that such a hush-hush stance on the issue by the government was leading the country's capital market to instability and volatility again.

On Monday, the DSE general index lost 212.34 points, triggering a fresh street protest by general investors. The index was at 6,540.60 points on April 7 when the probe committee handed over its report to the finance minister. On Monday, it stood at 5,863.97 points, losing 677 points in just two weeks.

The analysts and experts said as the government was frequently changing its stand on making the probe report public and as the finance minister was making pessimistic remarks about taking action based on the report, uncertainty among the invertors deepened and it turned into panic recently.

They also said that diverse statements made by stakeholders like Securities and Exchange Commission, Dhaka Stock Exchange, people named in the report as suspected manipulators and the probe committee chief were also making the investors jittery.  

Mirza Azizul Islam, former finance adviser of the interim government, said, 'Investors are in deep confusion about the possible government moves about the probe report as it is yet to come up with any specific indication on the issue.'

He said, 'The government should immediately make the probe report public as it is and also declare a possible course of action based on the report.'

Mirza Aziz, however, advised the investors not to be panicked.

Salahuddin Ahmed Khan, a Dhaka University finance teacher, said, 'At this stage the government should come up with an immediate action considering the interest of the market and investors.'

'Manoeuvres of the suspected manipulators might affect the market once again if the government makes delay in taking any move based on the probe report,' he said.

Akter H Sannamat, a capital market analyst, said, 'After Mondays' demonstrations, it seemed that the investors had become impatient.'

'Mondays' protest and recent volatility at the stock market are the result of the government's failure in handling the probe report,' he said.

Sannamat said, 'A precise action from the government is the only remedy in the current situation of the market.'

Head of the stock market probe committee Khodker Ibrahim Khaled on April 7 handed over the probe report to the finance minister Abul Maal Abdul Muhith. Muhith. On that day at a briefing at his office the finance minister said that the government would make the report public by deleting the names in it.

Source: New Age

Investors take to street again as stocks continue to plunge

Dhaka, April 26: Investors took to the street again on Monday and clashed with police in Motijheel protesting at the continuous fall in DSE share prices and the government's dilly-dally in publicising the probe report on recent stock market scam.

Angry investors from different brokerage houses descended on the busy road in front of the DSE building, halting traffic movement at around 12:30 pm after the general index of the DSE, or DGEN, fell by around 138 points in one and a half hours after the day's trading began at 11:00am.

The noisy crowds of investors set fire on paper and wooden boxes on the road and threw brickbats at different buildings on both sides of the road in downtown Motijheel, witnesses said.

The investors also chanted slogans against finance minister Abul Maal Abdul Muhith, Bangladesh Bank governor Atiur Rahman, Securities and Exchange Commission chairman Ziaul Haque Khandkar and DSE president Shakil Rizvi and demanded their resignation blaming them for the current spell of plunges in the DSE share prices.

They blamed Muhith for his continuous 'contradictory comments' on the situation of the market and his delay in making public the probe report on January's stock market debacle.

Police, however, dispersed the agitating investors by charging baton and chasing them to through different lanes and alleys in busy Motijheel area. Vehicular movement became normal again at around 1:30pm.

Because of heavy presence of police, investors left the area while the DSE general index slumped to one and a half month low to close at 5,863.97 points, losing 212 points on the day. 

The authorities deployed huge contingents of police in the area before the start of the trading sensing untoward incidents as anger was brewing among the investors for the last few days because of heavy slides in share prices after a government-formed investigation committee on April 7 submitted a probe report to Muhith on January's stock market debacle.

Since the probe committee, headed by Krishi Bank chairman Khandkar Ibrahim Khaled, submitted the probe report, the DGEN lost 676.63 points till Monday as investors became panicked because of continuous rumours surrounding the content of the probe report and possible government action. The DGEN was at 6,540 points on April 7.

The probe report named a number of large investors for their alleged involvement in the share market scam and a rumour spread that the large investors would force the market into a negative zone to create pressure on the government so that no action would be taken against them. Partial contents of the report were published by different newspapers.

Although the finance minister earlier said that he would make the report public and announce the government's course of action by seven days, the report is yet to be made public, giving opportunity a section of people to spread further rumours.

Abdul Matin, a protesting investor, told New Age that the finance minister had created a mystery by not publishing the report and trying to save the culprits. 'He [Muhith] is responsible for the current market slide. We are losing every thing,' he said.

Taib Ali, another investor, said that the continuous fall in share prices had given chances to the culprits to buy shares at lower prices. 'The market is still under their [suspected manipulators] control. What action the finance minister will take against them? They are roaming around with him,' he said.

Investors said that they had lost almost 30 percent of their capital in the latest slumps.

'We had been in heavy losses before the latest slump because of heavy plunges in January-March. Now our losses are compounding every day,' said Ashraf Hossain, another investor.

He said, 'The finance minister on Sunday claimed that the market was normal. His comments about the market are rubbish. He should not say anything about the market,' said an angry Ashraf.

Investors earlier also blamed Muhith, SEC chairman, BB governor and DSE president for the collapse of the market in January-March, when the DGEN came down to around 5,200 points in February from 8,900 points in December, 2010.

Source: New Age

Stock plunge sets off protests

Dhaka, April 26: A group of investors staged protests in front of the Dhaka Stock Exchange yesterday as the share prices nosedived sharply. The downward trend has been continuing for more than a week, except last Thursday.

The investors went for panic sell-offs from the opening hour of trading as most of them lost confidence following a debate on the stock probe report, said experts.

Speculations over the report created panic among small investors as they complained that the government is deliberately wasting time before making the report public, said one of the experts.

"The institutional investors also faced a credit crunch due to the tight money market, while some of them adopted a wait-and-see policy fearing another crash impending," said Akter H Sannamat, a market analyst.

Sannamat, also the former managing director of Prime Finance and Investment, said: "The government should take a series of good initiatives to help the investors restore their lost confidence."

The aggrieved investors started coming out of the trading houses around 12:30am when the market declined by around 140 points.

They set fire to vehicle tyres, wood blocks and paper in front of the DSE building blocking the avenue from Shapla Chattar to Ittefaq crossing and vandalised a motor bike.

The agitating investors also chanted slogans against the finance minister, top bosses of the premier bourse and demanded the resignation of the SEC chairman.

Investors demanded that the government publish the probe report as soon as possible and take action against those who are responsible for January's stock debacle.

Traffic returned to normal at 1pm after law enforcers intervened.

The benchmark general index of DSE lost 212 points, or 3.5 percent, to close at 5,863 points. The DSE index had lost 116 points on the opening day of the week.

The selective categories of index of Chittagong Stock Exchange slumped 404 points, or 3.64 percent, to close at 10,557 points.

Jewel Ahmed, an agitating investor said: "Small investors will leave the market if the government does not take any initiative to protect them."

"The government's unclear moves made us confused."

Lankabangla Securities said in its daily market analysis: "Frustration, fear and anxiety over the pending outcome of the probe report took a heavy toll on the market. As the opening bell rang, the market witnessed the gauge shedding blood and the situation exacerbated as the session progressed. Nervousness gripped the investors who offloaded shares in speculation of further index fall and prolonged bearish trend."

Some people deliberately made huge sell-offs to bring back another debacle to defame the government, said an SEC official.

The state run Investment Corporation of Bangladesh (ICB) bought shares of Tk 28 crore to halt the slumping trend of the market, he added.

Of the total 251 issues traded on the DSE floor, 237 declined, 11 advanced and three remained unchanged.

The low confidence also left its impact on the day's turnover, which came down to Tk 613 crore, down by Tk 18.1 crore from that of the previous day. The bank sector lost 3.09 percent, reaching 27.2 percent of the total market capitalisation, while non-bank financial institutions lost 4.46 percent.

Source: The Daily Star