Stocks suffer big jolt

Stocks fell 4.20 percent, the steepest in one month, as investors sold shares a day after the government declared a special scheme for compensating the small investors who lost money to market downswings.
The benchmark General Index, DGEN, the indicator of Dhaka Stock Exchange, lost 192.45 points, to end the day at 4,385.22 points.
Rakibur Rahman, former president of DSE, blamed the price decline on a syndicate that is “working against the market”.
A group of investors sold off shares as the special scheme fell short of their expectations, said Rahman. “It was not expected to happen in the market.”
The Securities and Exchange Commission will investigate the day's trading to find out if any syndicate is involved in the market, said a top official of SEC.
The official said the commission sped up efforts to develop its own surveillance system to monitor the market properly.
“The commission is serious about finding out the syndicate,” he added.
Turnover on the DSE floor stood at Tk 304 crore, which was 11 percent higher compared to the previous day.
A total of 1.05 lakh trades were executed with 6.98 crore shares and mutual fund units changing hands on the Dhaka bourse.
Prices of 239 issues declined, 10 advanced and six securities remained unchanged in the market.
All major sectors lost: non-bank financial institutions lost 5.64 percent and banks 4.28 percent. The power sector lost 3.87 percent, pharmaceuticals 3.21 percent and telecoms 3.07 percent respectively.
Beximco topped the turnover table with 17.46 lakh shares worth Tk 16.88 crore changing hands.
Singer Bangladesh was the biggest gainer of the day as it posted 4.38 percent gain. Rupali Life Insurance Company was the worst loser, plunging by 9.28 percent.
The Chittagong Stock Exchange also returned to the red yesterday. The Selective Categories Index of CSE lost 320 points, to end the day at 8106.83.
Losers beat advancers 171 to 15 with two securities remaining unchanged on the port city bourse that traded 1.10 lakh shares and mutual fund units with Tk 43 crore in turnover.