Stocks plunge on donors' comments | The Daily Star
12:00 AM, October 27, 2011 / LAST MODIFIED: 12:00 AM, October 27, 2011

Stocks plunge on donors' comments

Stocks fell yesterday due to the pessimistic observations of the World Bank on the share market.
The key index of Dhaka Stock Exchange, DGEN, dropped 2.5 percent to 5,411 points.
The fall also prompted investors to take to the streets in front of the premier bourse around 2:30pm, half an hour before the market closed. The aggrieved investors chanted slogans and formed a human chain protesting the slump.
Insiders said the market suffered the losses due to international donor agencies' negative observations about the stockmarket.
In its latest economic update released on Tuesday, the WB said the investment exposure of some banks to the stockmarket and the creation of a fund with support from public financial institutions to shore up the market will reduce loans to the private sector.
In a recent report to the government, the International Monetary Fund predicted a further price fall in the share market. Questions have been raised on the creation of a market stabilisation fund, the report added.
“Their comments, especially the IMF's remark on the possibility of a further fall in share prices, dampened retail investors' confidence,” said a merchant banker.

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