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The premier bourse of the country has started an investigation to find out why DSE index came down by 98 per cent on Sunday.
In Bangladesh, stock prices are limited to a maximum daily decline of 10 per cent. So, it is impossible for DSE index to come down by 98 per cent in one day.
However, after the trading session on Sunday, Dhaka Stock Exchange (DSE) general index DSEX was shown to have come down by 97.68 per cent, from 6112 points to 142 points.
Whereas the DSE Sharia index DSES was shown to have come down by 97.68 per cent, from 1336 points to 31 points.
On the other hand, the DSE blue-chip index had already come down by only 0.5 per cent to 3084 points.
DSE Managing Director ATM Tariquzzaman told the FE that this was an operational error.
A person familiar with the system told the FE that someone erroneously put an unusually high quantity in the system. That’s why, the index came down by 97 per cent. The vendor and the DSE team are working to solve the problem.
It is taking time to solve this because the DSE team did not develop the trading software themselves; they only purchased the service and not acquainted with its total programming well.
Countries like India and China followed a different policy: they purchased basic software from a German company and then customised it for their own market.
So the person familiar with the system believes this kind of error may repeat in future until DSE develops the software by itself.
DSE has subscribed to its trading software from Nasdaq. The error occurred within the trading software.
Such problems are not uncommon at DSE; there have been many problems with the software previously. The chairman of Bangladesh Securities And Exchange Commission had repeatedly blamed DSE’s information technology infrastructure as a big obstacle to the development of the country’s capital market.
What the DSE says
The press release from DSE said the management of DSE had already sat with Nasdaq and they were trying to solve it.
It also said the DSE had decided to start an investigation headed by A G M Sattique Ahmed Shah, the chief financial officer & chief operating officer (In-charge) of the main bourse.
A three-member member investigation committee, led by Mr Shah, is to submit a report about this in three days.
BSEC starts new probe
Meanwhile, the stock market watchdog has ordered a separate investigation about the incident.
A two-member committee has been given three days to submit a report to the BSEC about this.
DSE website corrected
Meanwhile, the DSE website is showing corrected figures. According to the update, the DSEX lost 38 points on Sunday, closing at 6075 points.
DSES came down by 11 points and stood at 1325 point.
Aamra Networks’ limited trading cancelled
According to the DSE website, DSE indices showed some unusual figures due to an operational error while taking corporate action for Rights entitlement of Aamra Networks Limited in the system on Sunday. Therefore, trading of shares of Aamra Networks Limited has been suspended for the day. Besides, all of this day’s executed trades of AAMRANET alone will be cancelled.