Stock investors have demanded resignation of the chairman of Bangladesh Securities and Exchange Commission, as the market has lost 260.48 points or Tk 16,863 crore since July 2, the first trading day after the budget was passed.
A group of investors have been demonstrating in front of the Dhaka Stock Exchange (DSE) for the last five days, as the commission boss has failed to boost the market confidence.
At the protest site, Mizanur Rahman, an investor, said the chairman has failed to implement the rules and regulations the BSEC has formulated to establish accountability in the market.
The BSEC has also not taken any strict measure against the directors of the listed companies who have failed to hold at least 2 percent shares in their companies, he added.
According to the rules, the directors of listed companies must hold at least 2 percent shares individually and 30 percent jointly.
Monir Hossain, another investor, said he does not blame the chairman of the BSEC for the rise or fall of the index.
“The chairman has failed to punish the gamblers.”
Abu Ahmed, a former chairman of the economics department of the Dhaka University, said the present commission has failed to boost investors’ confidence.
Instead, it spooked investors’ confidence on the mutual fund sector by allowing return on unit (a form of stock dividend) and enhancing their tenure by 10 years, he said.
“The commission has failed to punish the sponsors who sold off shares without informing investors. It could not bring good stocks to the market as well.”
However, the stocks bounced back slightly yesterday, ending a seven-day falling streak.
The DSEX, the benchmark index of the DSE, edged up 32.96 points or 0.64 percent to 5,124.48.
Turnover, another important indicator of the market, however, fell by a staggering 11.2 percent from the previous session, to Tk 271.76 crore, the lowest in two months.
Market insiders say the regulator should talk to the institutional investors informally and encourage them to provide support to the market so that the index goes up.
UCB Capital, one of the leading stockbrokers, said in its market analysis that the market closed in the green, breaking the week-long losing streak as investors opted for buying attractive and fundamentally sound stocks.
However, there was volatility throughout the session, it added.
Of the traded issues, 222 securities advanced, 94 declined and 36 closed unchanged. Sea Pearl Beach Resort & Spa, which debut on the day, dominated the turnover chart with 50.13 lakh shares worth Tk 15.41 crore changing hands, followed by Fortune Shoes, Brac Bank, Bangladesh Shipping Corporation, and Sinobangla Industries.
The five-star hotel was the day’s best performer with a 269 percent gain, while First Finance was the worst loser, shedding 10 percent.
Chattogram stocks also rose with the bourse’s benchmark index, CSCX, increasing 49.31 points, or 0.59 percent, to finish the day at 9,537.30.
Gainers beat losers as 152 securities advanced, 89 declined and 27 finished unchanged on the Chittagong Stock Exchange.
The port city bourse traded 68.92 lakh shares and mutual fund units worth Tk 16.44 crore.