Dhaka stocks see highest single-day fall in 11 months
BI Report || BusinessInsider
Inverstors monitor price movement at a brokerage house in Dhaka on Sunday. Photo: Business Insider Bangladesh
Vested quarters in the country’s bourse are eyeing big bucks by spreading artificial fear among general investors over the Russia-Ukraine conflict to trigger a panic sale.
Many of these general investors stay worried every day, unsure how the market is going to react to each development of the conflict.
DSEX, the benchmark index of the Dhaka Stock Exchange (DSE), shed 163 points or 2.38 percent to settle at 6,676 on Sunday.
This was the highest single-day drop in nearly 11 months. Earlier on April 5 last year, the highest 181 points were wiped off the index.
Following the news of Russia launching an attack on Ukraine, Dhaka stocks lost 109 points or nearly 2 percent on Thursday.
With this, DSEX lost 272 points in just two trading sessions since the conflict began.
Market participants do not think this fall is normal. They have advised investors to remain calm and refrain from any unnecessary panic sales. Investors should stay informed and weigh if it is really the conflict or the ill-intentioned rumours impacting the market, they said.
Azad Ahsan Bachchu, an investor, said he noticed “extreme panic” among investors over the Russia-Ukraine war. The unfounded panic is exacerbated by rumours that an even bigger fall in the market is coming.
As a result, many small investors are trying to save money by selling their shares even if they are at a loss, he added.
Mohammed Mohsin, another investor, said rumours were hurting the market more than the news of the war. When panicked ordinary investors sell their shares, some opportunists are pouncing on those.
According to market analysts, the negative effects of the war on investors have been at work since last Thursday. Added to this is the negative propaganda of some opportunistic people.
What does DSE say?
In this regard, DSE Director Sharif Anwar Hossain assured that Bangladesh is still safe despite the effects of the conflict on the world.
It is hoped that the war will not last long. Therefore, it would be wise for investors in the stock market of Bangladesh not to be overly frustrated, he advised.
What does the BSEC say?
Mohammad Rezaul Karim, executive director and spokesman for the Bangladesh Securities and Exchange Commission (BSEC), said there was no reason for our capital market investors to be concerned about the Russia-Ukraine war.
However, he warned that the BSEC would take stern action against anyone who wanted to take advantage of the situation by spreading rumours or otherwise creating unrest in the market.