Dhaka stocks Thursday saw the biggest single-day fall in more than four months amid protests by investors, as retailers took wait-and-see approach ahead of the debut of the country's largest initial public offering, Grameenphone.
The benchmark DSE General Index (DGEN) dropped some 60 points across the board when the trading began, sending scores of angry investors to the streets, but made some recoveries in late hours, led by banking shares.
The DGEN still shed 39.75 points --- it's biggest single-day drop since July 5 when the index lost 103 points --- to close at 3382.87, which is 1.16 per cent down from the previous day.
Police were called in to step up security in front of the DSE trading floors and the Securities and Exchange Commission (SEC) office, as more than 50 investors staged demonstration, demanding easing of lending regulations for securities.
The protesters put up blockade in the Motijheel commercial area for half an hour and marched through the busy streets to the SEC office. Police said they have no report of violence.
The securities regulator last month tightened lending to mutual funds, paper shares and some risky securities in an effort to cool down what it said an 'overvalued' market.
The broader DSE All Shares Price Index (DSI) lost 32.82 points or 1.14 per cent to 2833.35 while DSE-20 blue chips index dropped 12.82 points or 0.55 per cent to 2285.25.
The market was skewed
towards declines as out of 227 issues traded, 67 advanced, 159 suffered losses and one remained unchanged. The turnover declined to Tk 8.90 billion against the previous session's Tk 10.88 billion.
Dealers said the market nose-dived due to the cautious attitude of the investors, as many were waiting in keen anticipation for next week's debut of the Grameenphone, the largest private company in the country.
"Investors, mostly small, sold their shares in a bid to see how the market reacts when Grameenphone (GP) makes its much-talked-about debut on Monday," said a stockbroker, asking not to be named.
"But a late gain by banking shares saved some blushes," he added.
The SEC also discussed GP's debut and its possible impact in the market.
"The commission thinks that there will be no major impact when GP debuts in the market," said a SEC official.
"Still, we shall observe the company's trading for two to three days. We'll be ready for any prompt action if we see any adverse situation," he added.
Shares of the state-owned Power Grid Company topped the turnover list with shares worth Tk 501.90 million changing hands.
It was followed by Titas Gas, AB Bank, Beximco, Jamuna Oil, Bextex, Standard Bank Ltd, Social Investment Bank Ltd, Premier Leasing and Al Arafah Bank.
The benchmark DSE General Index (DGEN) dropped some 60 points across the board when the trading began, sending scores of angry investors to the streets, but made some recoveries in late hours, led by banking shares.
The DGEN still shed 39.75 points --- it's biggest single-day drop since July 5 when the index lost 103 points --- to close at 3382.87, which is 1.16 per cent down from the previous day.
Police were called in to step up security in front of the DSE trading floors and the Securities and Exchange Commission (SEC) office, as more than 50 investors staged demonstration, demanding easing of lending regulations for securities.
The protesters put up blockade in the Motijheel commercial area for half an hour and marched through the busy streets to the SEC office. Police said they have no report of violence.
The securities regulator last month tightened lending to mutual funds, paper shares and some risky securities in an effort to cool down what it said an 'overvalued' market.
The broader DSE All Shares Price Index (DSI) lost 32.82 points or 1.14 per cent to 2833.35 while DSE-20 blue chips index dropped 12.82 points or 0.55 per cent to 2285.25.
The market was skewed
towards declines as out of 227 issues traded, 67 advanced, 159 suffered losses and one remained unchanged. The turnover declined to Tk 8.90 billion against the previous session's Tk 10.88 billion.
Dealers said the market nose-dived due to the cautious attitude of the investors, as many were waiting in keen anticipation for next week's debut of the Grameenphone, the largest private company in the country.
"Investors, mostly small, sold their shares in a bid to see how the market reacts when Grameenphone (GP) makes its much-talked-about debut on Monday," said a stockbroker, asking not to be named.
"But a late gain by banking shares saved some blushes," he added.
The SEC also discussed GP's debut and its possible impact in the market.
"The commission thinks that there will be no major impact when GP debuts in the market," said a SEC official.
"Still, we shall observe the company's trading for two to three days. We'll be ready for any prompt action if we see any adverse situation," he added.
Shares of the state-owned Power Grid Company topped the turnover list with shares worth Tk 501.90 million changing hands.
It was followed by Titas Gas, AB Bank, Beximco, Jamuna Oil, Bextex, Standard Bank Ltd, Social Investment Bank Ltd, Premier Leasing and Al Arafah Bank.
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