Dhaka stock exchange sees biggest fall ever
Dhaka stock exchange sees biggest fall ever
In Bangladesh, the Dhaka stock exchange and the Chittagong stock exchange witnessed the biggest fall ever forcing the market regulator to stop trading for the day within one hour of the markets opening on Monday and leading to violent protests by investors.
The Dhaka Stock Exchange, DGEN Index, slumped by 660 points and Chittagong Stock Exchange (CSE) Index fell by 914 points within the first one hour of trading. Monday’s fall in the index surpassed the 600 point fall in the Dhaka stock exchange on Sunday.
Market regulator Securities and Exchange Commission convened an emergency meeting with merchant bankers and institutional stockbrokers to decide its next course of action to save the market. Following the meeting the regulator has again increased margin loan ratio to 1:2 from the earlier level of 1:1.5.
With the market suffering from liquidity crunch, the market regulator has also allowed the spot market companies to trade in the main market from Tuesday. In addition to this netting facilities have also been opened for all companies in a bid to raise the purchasing power of the investors.
