Index decreased by 450 points in a week
Mahfuz Emran: : In just seven working days, the market capital of the main stock exchange Dhaka Stock Exchange (DSE) has gone up to over Tk 31,000 crore. And the main price index has decreased by about 450 points. It has been alleged that the anti-government clique is behind such a fall in the stock market.
This cycle is trying to bring down the stock market by spreading rumors to put the government in an embarrassing situation.In the meantime, the cycle has spread various rumors in the market using the dollar appreciation and crisis as a tool.
It has been alleged that some DSE officials are assisting this cycle from behind. As part of their plan, the DSE is investigating a number of issues in the fall market, which accelerates stock market declines. As a result, stock market investors have recently seen a big fall.
The main price index of DSE has declined by about 450 points in the last seven consecutive working days. The market capitalization of DSE has decreased by Tk 30,917 crore. Ordinary investors are lost because of such a fall in the stock market. Every day they are suffering from the fear of losing capital.
Meanwhile, the regulatory body Bangladesh Securities and Exchange Commission (BSEC) has made various efforts to bring the market out of the slump, but it is not seeing the face of success. As a result, the crisis of investor confidence in the market is increasing.
In this regard, an investor Mashiur Rahman said, BSEC is taking various steps including increasing the investment of ICB to make the market better. But there is no benefit in that. It can’t do anything to cool the situation. The market has been bad before, but I’ve never been in such a situation. Now wherever I am investing, there is a loss. If this situation continues, ordinary investors like us will become destitute.
However, analysts say that in the recent downturn, the average share price of all types of companies has declined. Even good companies did not survive this fall. There is no reasonable cause for the fall in the stock market. Since the share price of a good company has come down, investors should choose and buy good shares.
Meanwhile, it has been learned that the anti-government clique has made various attempts to gain political advantage from the stock market. They have been assisted in various ways by some brokerage houses owned by the opposition partymen and Merchant Banks controlled by several financial institutions of the same ideology.
It has been learned that since 1997, the stock market has been used for political gain. In 2010, the image of stock market politicization became very public. At that time an anti-Awami League clique invested heavily in the government. The stock market flourished abnormally due to their activities. As part of the plan, the cycle began to simultaneously sell shares to create instability by raising money invested during the 2010 great depression.
This cycle is active in the stock market even before the 2018 parliamentary elections. When BNP chairperson Khaleda Zia was about to be arrested in a corruption case, in January 2016, the clique tried to create instability in the stock market. Unusual selling pressure has led to a sharp fall in the stock market.
After the 2016 parliamentary elections, the cycle became inactive for a while. However, when the stock market started to rise in June 2020, the cycle became active again in the market. Along with them, pro-Awami League businessmen also increased their investment in the stock market. As a result, there is a big rise in the stock market. The target of the cycle was to create an unusual situation by simultaneously increasing the pressure to sell shares in the middle of next year.
However, in the wake of the Ukraine-Russia war, when the global economic instability occurred, the anti-government clique became involved in creating instability in the country’s stock market. The recent rise in the dollar and the crisis have added to the pressure on shares. At the same time, various scary information is spread in the market. Even some brokerage houses discourage investors from making new investments. The stock market has plunged into panic.
On condition of anonymity, top officials of several brokerage houses said that the current fall in the stock market is unusual. A special cycle is deliberately causing this price drop. A large part of the members of the DSE is anti-government ideologues. From these brokerage houses of anti-government ideology, on the one hand, the pressure of selling shares is being increased, on the other hand, new investments are not being made. The BSEC should find out from which house the unusual selling pressure is increasing and who is inactive.
They added that the DSE administration was largely inactive when the market was good. But recently, when there was a negative trend in the market, the DSE suddenly started investigating some sensitive issues, which caused panic among the investors. As a result, the fall in the stock market is further accelerated. Some of the DSE officials have close ties with the anti-government clique that is trying to destabilize the stock market. Basically, they are spreading panic in the market in the name of various investigations.
Meanwhile, the regulatory body BSEC has recently ordered an investigation against six officials of the country’s main stock exchange Dhaka Stock Exchange for alleged involvement in immoral activities.
Among these six officers are- DSE General Manager (DM) Md. Samiul Islam and Md. Asadur Rahman, Deputy General Manager Shafiqur Rahman, Md. Shafiqul Islam Bhuiyan and senior manager Ronnie Islam and Md. Pathan (Harunur Rashid). The BSEC has directed to investigate the six officials and submit a report by June 30.
When contacted, stock market analyst Professor Abu Ahmed said that the stock market was falling due to fears over various issues, including the Ukraine-Russia war and the appreciation of the dollar. All types of stocks, good and bad, have fallen in the market. Shares of many good companies have fallen below reasonable prices. I think investors should choose these institutions and buy shares. Then good profit can be obtained.
Sydur Rahman, president of the Bangladesh Merchant Bankers Association (BMBA) told: The stock markets of other countries of the world have also turned around. We have a lot of panic among the investors here due to social communication or various reasons. But hopefully it will be cut quickly and we will get a good market from the new week.
Is the anti-government party systematically bringing down the price in the stock market to put the government in an embarrassing situation? When asked, he said, “I do not know of any such information.” I do not want to comment on this.
Kazi Abdur Razzak, general secretary of Bangladesh Capital Market Investors Unity Council, told that the current fall in the stock market is planned. To embarrass the government, the anti-government clique is deliberately bringing down the prices. There is another cycle with them, which is trying to grab the shares of ordinary investors at low prices.
He said that in the past also anti-government clique has tried to create instability in the stock market. That cycle is now active in the market again. The BSEC should identify this cycle and take necessary steps. The BSEC can, through surveillance, find out who is increasing the pressure to sell abnormal shares and who is inactive.
He further added that the talk of Russia-Ukraine war is an old one. For this reason, there is no reason to have a negative impact on our stock market. Moreover, the stock markets of other countries of the world have turned around. So, it is clear that a special cycle to embarrass the government is deliberately causing a fall in our stock market.
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