Big fall in the stock market on the day the price cut limit of 3 percent came into effect

There was a big fall in the stock market index on the day of the effective date of the new limit of 3 percent by the Bangladesh Securities and Exchange Commission (BSEC) to prevent the fall of shares.

According to the market watch, today on Thursday, DSE’s main index DSEX fell by around 100 points at the beginning of the day, later the index rose again due to trading by large investors.

At the end of the day, the DSEX was 60 points or one percent lower than the previous day at 5,518 points. That is the lowest position in three years for the index.

Today, the index of Shariah-based companies DSES decreased by 12 points or 1 percent to 1 thousand 217 points.

Similarly, the blue-chip index DS30 decreased by 10 points or 0.51 percent to 1,974 points.

A broker said such intervention by BSEC has created more panic among investors, who fear that their investments may be stuck again. As happened after the introduction of floor prices.

‘So they are trying to raise cash by selling shares. Because currently the interest rate of treasury bonds is about 12 percent, the interest rate of bank deposits is higher,’ he said.

He also said, ‘In such a situation, who would want to take risks by investing in the stock market? Moreover, investors fear that the stock market may slow down again. This fear will increase the fall of the market.

In an order issued by the BSEC yesterday, the share prices of listed companies cannot fall by more than 3 percent. Earlier it was 10 percent.

However, the upper limit i.e. the share price increase limit of 10 percent has been kept unchanged.

Shares of 129 companies ended trading down 3 percent on the DSE today, taking the total to 392. So it can be said that the investors of these companies have tried to sell as many shares as possible.

On this day, the turnover decreased by 15 percent to 511 crore rupees.