• Monday, December 9, 2019

Bangladesh stock market fall: Clashes hit Dhaka

Discussion in 'Bangladesh Defence Forum' started by MST, Jan 10, 2011.

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  1. MST

    MST FULL MEMBER

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    10 January 2011

    Bangladeshi police have used tear gas and water cannon against angry investors after the stock market incurred huge losses.

    Trading on the Dhaka Stock Exchange index was halted after it fell by 660 points, or 9.25%, in less than an hour.

    It was the biggest one-day fall in its 55-year history.


    It is estimated that over three million people - many of them small-scale individual investors - have lost money because of the plunging share prices.

    The benchmark index had climbed by 80% in 2010 but has lost more than 27% since early December.

    Investors and police also clashed last month.

    Monday's protest followed losses of about 6.7% in Sunday trading.

    Trading was also halted on the country's other main index, the Chittagong Stock Exchange.

    Rumours and panic
    Police say that they are now firmly in control of Dhaka's business district and have closed roads leading to the stock exchange.

    Earlier, officers baton-charged about 5,000 investors to clear them from the area.

    They had gathered to protest against the closing of the exchange after the record fall. Vehicles were vandalised and bonfires were lit at traffic intersections.

    "They started vandalising government property, which forced us to use batons against them," police inspector Azizul Haq told the AFP news agency.

    One of the protesters, Mukul Ahmed, said he had lost $3,000 (£1,932) in the market over the last three weeks.

    There was also violence in the port city of Chittagong - which has its own exchange.

    The government regulator, the Securities and Exchange Commission, held an emergency meeting on Monday with merchant bankers and institutional stockbrokers to discuss saving the market from further falls.

    The rising value of the stocks in recent years has attracted millions of investors in Bangladesh.

    Shares have become a popular investment for ordinary people, often providing higher returns than bank deposits and savings.

    The BBC's Mark Dummett says that Bangladesh might be one of Asia's poorest countries, but its two stock markets have soared in recent years on the rising value of its mobile telephone companies and other firms.

    But over the past few weeks more and more investors have been selling up, amid rumours that large institutional investors had pulled their money out after making large profits.

    In recent weeks, regulators have taken measures to limit the proportion of deposits that banks can invest into the stock market - after concerns that shares were over-valued.

    This move forced big institutional investors to withdraw from the market, triggering panic among individual investors.


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    Last edited: Jan 10, 2011
  2. StingRoy

    StingRoy SENIOR MEMBER

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    What triggered the crash?
     
  3. Imran Khan

    Imran Khan PDF VETERAN

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    [​IMG]

    [​IMG]


    Bangladeshi investors light a fire and shout slogans in the commercial heart of the Bangladeshi capital Dhaka on December 19, 2010 after the Dhaka Stock Exchange plunged to its steepest fall in history. The benchmark DSE general index (DGEN) lost 552 points or 6.72 percent as panic gripped investors following last week's policy rate hike by the central bank and a scary bear runs that shook shareholders' confidence. AFP PHOTO/STRINGER (Photo credit should read STRINGER/AFP/Getty Images)
     
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  4. MST

    MST FULL MEMBER

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    I have highlighted the imp points in the article. You can check it for the reason.
     
  5. Al-zakir

    Al-zakir ELITE MEMBER

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    Gain and loss is part of the business but this is abnormal and there are some crooks involved. I lost money on my stocks as well but I will survive however many went broke. The crooks are playing dirty game with small investors and I can not blame them if they took some steam out due to frustration.

    This is a bad sign for Bd's stock and overall business condition.
     
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  6. fallstuff

    fallstuff SENIOR MEMBER

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    The good ol pump and dump.
     
  7. StingRoy

    StingRoy SENIOR MEMBER

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    Thanks, I had missed the last line... institutional investors withdrew in unison.

    It has been the norm in all stock markets, it is always the institutional investors and large investors who have had an upper hand in the stock market. Small investors should not risk too much in the stocks and always exit with moderate gains.
    2 cents from my experience.
     
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  8. Al-zakir

    Al-zakir ELITE MEMBER

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    This is abnormal. I am withdrawing all my money form BD market as of now. I lost confident. This was pure inside job. Some crooks got richer with poor man hard earn money. :tdown:
     
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  9. Al-zakir

    Al-zakir ELITE MEMBER

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    Same bull happened in 96 during Al regime. Something fishy here. :angry:
     
  10. SpArK

    SpArK PDF THINK TANK: ANALYST

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    ^^^^
    *.Facepalm*
     
  11. Al-zakir

    Al-zakir ELITE MEMBER

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    BNP terms stock debacle a 'plot'


    Mon, Jan 10th, 2011 10:20 pm BdST

    Dial 2000 from your GP mobile for latest news
    Dhaka, Jan 10 (bdnews24.com)—BNP has termed the record fall in the Dhaka Stock Exchange a 'plot' by the government and the market regulator.

    "Like that of 1996 crash, it's not a coincident, rather it was fabricated. Three million people lost their investmens within a moment," party's standing committee member Abdul Moyeen Khan told reporters on Monday.

    "It can't be accepted," he said at the emergency press conference held at BNP's Gulshan office, arranged after the DSE saw a record fall of index in a single day by 660 points.

    The index lost over 233 points on Nov 6, 1996.

    Trading at the two stock markets—Dhaka and Chittagong—were halted within an hour in the morning when the small investors took to the streets. Agitation also spread throughout the city and other parts of the country too.

    DSE trading will resume at 11am on Tuesday.

    "The government should have taken measures before such incident to take place in a bid to save the small investors," the BNP leader said.

    Quoting media reports, he alleged certain quarters and several private banks were behind the manipulation.

    bdnews24.com/sm/pks/am/2010h
     
  12. saleen_s7

    saleen_s7 FULL MEMBER

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    Last time, there was a speculation that Salman F Rahman has triggered this crash with the help of some awami league inside man.
    Honestly, with the way govt was spending money on unneeded infrastructures, it was not really that shocking.
     
  13. StingRoy

    StingRoy SENIOR MEMBER

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    It is a good move to withdraw your money out and take the loss now.... I had invested heavily in the US markets and the 08 crash wiped off significant amount from my portfolio. I am still working to recover my money, but have a much better understanding of the market now and know how to balance my risks.
    Could have well been an insider job who triggered the wide spread panic sell off. Will wait for the investigations.
     
  14. Grandeur

    Grandeur BANNED

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    Are there huge amounts of loss?
    :undecided:
     
  15. Skies

    Skies SENIOR MEMBER

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    Do you trade your account from USA by yourself, or some one else buy or sell on behalf you from BD?

    Currently, for the first time sockbangladesh.com is providing the OMO (Online Market Order) service in BD by which you can buy and sell in online.

    Also they are providing lots of graphs like MACD and NAV and info:

    Share Market Analysis Portal For Dhaka Stock Exchange-Bangladesh

    like this:

    [​IMG]

    How there is a relation between spending money for infrastructures and DSE index fall?

    Btw, I also suspect that current situation is inside job to facilitate a group of people. May be many people will recover their loss after a certain time, but in the mean time a group of people will be benefited.








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    @ Grandeur

    can you change your location? It's disturbing to others! :hitwall:
     
    Last edited: Jan 10, 2011
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