No reason for stock market situation to deteriorate: DSE Brokers’ Association

The DSE Brokers’ Association (DBA), in a meeting on the present state of the stock market, has opined that there is no reason for the stock market situation to deteriorate.

However, there is a price adjustment of stocks following the lifting of the floor price barrier, and it is normal, they said this in a meeting held on a virtual platform on Tuesday, UNB reports.

The broker representatives indicated that the market will return to normal very soon as the country’s economy is turning around.

They also raised some points for implementation, which they believe would positively impact the share market, contributing to its stability and sustainability in the long run.

Firstly, it is to address rumours in the market that the floor may be re-imposed on the share price, which is false and baseless. DBA does not think that there will be a recurrence of the floor price, though.

Secondly, the Margin Rules-1999 needs to be modernised and reformed. Good companies should be listed in the IPO market. Proper compliance with all laws and regulations should be ensured in the case of a company listing.

Thirdly, emphasis should be placed on mutual funds to reduce dependence on banks for investment. It is logical to categorise the company based on its capital size rather than on dividends. Shares of any company should not be increased in any other way without informing the common shareholders and sponsor shareholders.

Additionally, the issue of double taxation should be taken into consideration and resolved immediately.

DBA President Saiful Islam moderated the meeting.

The event was attended by DSE Director Sharif Anwar Hossain, Richard D’Rosario, former DBA President Ahmad Rasheed Lali, BLI Securities Managing Director Minhaj Mannan Emon, Beximco Securities CEO Mustafa Zamanul Bahar, among others.

Dhaka stocks suffer major decline

However, despite the regulators' efforts to ensure stability, the main index of the Dhaka Stock Exchange suffered another significant decline on Tuesday.

The DSEX, the benchmark index of the premier bourse of Bangladesh, lost 84 points, or 1.42 per cent, to close the day at 5,814.

With this, the market fell for the eighth consecutive day, prompting the DSEX to hit a 35-month low.

Turnover slipped to Tk 4.65 billion from Tk 4.86 billion a day earlier. Among the traded stocks, 41 advanced, 319 dropped, and 36 remained unchanged.