BANGLADESH

General indices of both the bourses have plummeted sharply, a day after closing high.

On Wednesday, the index at the Dhaka Stock Exchange (DSE) lost 94 points and 155 on the Chittagong Stock Exchange (CSE).

Asked, CSE president Fakhor Uddin Ali Ahmed told , "The index fell as the assured steps to keep the market stable have not been fulfilled."

He said, "The Securities and Exchange Commission (SEC) has declared taking various steps like increasing netting facilities, minimising transaction time, reducing CDBL charges and increasing time to adjust subsidiary loan. But as the implementation is yet to happen, the market has fallen again."

After a meeting with the Bangladesh Merchant Bankers Association (BMBA) on Tuesday, SEC spokesman Saifur Rahman said the central bank had decided to give merchant banks more time to adjust their single-party exposure limit in a bid to help the drooping capital market.

The measure triggered the indices at both the bourses, until Wednesday morning, after which it started falling.

Small investors in frustration staged demonstration in front of the DSE.

BMBA president Mohammad A Hafiz in the evening told that shares were being bought from different institutions including merchant banks.

He also urged the investors to have patience, anticipating that the market would rebound within a day or two.

"Assurance has been given to extend time for loan adjustment. Therefore, there's nothing to panic," he observed.

Capital Market Investors Council's Mizanur Rashid Khan said there was a rumour that the adjustment time would not be extended.

"We've heard that a circular was supposed to be published, but it did not happen at last," he added.

On Wednesday, turnover stood at Tk 3.79 billion, 225 share prices declined, 25 advanced and seven remained unchanged.

The DSE general index rose 134.32 points or 2.26 percent to 6055.17 on Tuesday.