Stocks lurch into the red as market rife with rumours

Stocks dived as investors went into panic sales yesterday, influenced by rumours that manipulators were trying to create a volatile situation again to pressure the government not to take tough actions against them.
The benchmark general index of Dhaka Stock Exchange slumped 294 points, or 4.48 percent, to 6,262 points. The selective price index of Chittagong Stock Exchange lost 431 points, or 3.66 percent, to close at 11,338 points.
Insiders said the market manipulators spread rumours in the market, striking fears into investors. “The manipulators want to create volatility again in the market,” one of them said.
Mirza Azizul Islam, former adviser of caretaker government, said: "The government should investigate the manipulators' moves to help restore investor confidence."
Islam, also a former chairman of the Securities and Exchange Commission, said: "The market will come back on track within a few days."
Jewell Ahmed, a retail investor, said: "The government should take proper actions against the manipulators."
Ahmed urged the commission to approve the Bangladesh Fund to help the investors regain their confidence.
The government should take actions against the manipulators as soon as possible, Aktar Sannamat said.
Most of the share prices of all major sectors such as banks dropped 4.41 percent, non-bank financial institutions 5.37 percent, fuel and power 3.93 percent and telecommunication 2.35 percent.
Of the total 261 issues traded on the DSE floor, 230 declined, 27 advanced and four remained unchanged.
The daily turnover at the DSE stood at Tk 1,224 crore, down by Tk 65.63 crore from that of the previous day of trading.
Beximco topped the turnover leaders with 20.06 lakh shares worth Tk 57.36 crore traded on the day.
The other turnover leaders were Titas Gas, Aftab Automobiles, Bextex, BSRM Steels, Desco, Square Pharmaceuticals, Bay Leasing and Investment Services, Olympic Industries and Fu-Wang Ceramic.
Fourth ICB Mutual Fund was the biggest gainer of the day, posting a 4.75 percent rise in its share price, while the Exim Bank was the worst loser, slumping by 32.32 percent.
However, the SEC has formed a committee to investigate the allegations of unusual shares trading of Dutch-Bangla Bank on the day.