Stock Market Manipulators Triggered Plunge Last Week: Analysis
Last week, the stock market took a hit as regulatory measures were taken against market manipulators, leaving investors feeling on edge. The benchmark index of the stock markets dropped, causing concern among traders.
Experts believe that the recent decline in market activity can be attributed to various factors, such as dwindling investor confidence and increased uncertainty. Furthermore, significant fines were imposed on several market manipulators, adding to the negative sentiment in the market.
To crack down on manipulation and promote fairness, the Bangladesh Securities and Exchange Commission (BSEC) imposed fines of around Tk 2.70 billion on multiple entities and ordered a special audit of three major concerns within the Beximco Group. These actions are part of a broader effort to restore integrity to the capital market.
As a result of these developments, the market saw a continuous selling trend throughout the week. Even the news of the disbursement of a Tk 3,000 crore sovereign-guaranteed loan to ICB failed to alleviate the prevailing pessimism, allowing bearish investors to dominate the market momentum.
Last week, the DSEX, the broad index of the Dhaka Stock Exchange, lost 91.4 points, or 1.8 percent, ending at 5,105 points. Investor participation also declined by 27.5 percent compared to the previous week.
Investors were particularly active in the Pharma sector, followed by the Textile and Bank sectors. Most sectors experienced losses, with the Paper sector seeing the largest decline at -6.2 percent.
The total market capitalization decreased by Tk 11,200 crore, reaching Tk 6,52,400 crore on Thursday. Large-cap stocks were mainly responsible for this decline. Notably, Islami Bank witnessed an 11 percent drop in its stock price, contributing to a significant decline in the key index.
Overall, the stock market faced a challenging week, with most traded stocks experiencing price declines. However, some top-traded stocks included Orion Infusion, Dragon Sweater, Asiatic Laboratories, Lovello Ice-Cream, and Saiham Cotton Mills.
The Chittagong Stock Exchange (CSE) also saw a decrease, with the CASPI losing 277 points and the CSCX shedding 169 points. Despite these challenges, efforts are being made to maintain market integrity and investor confidence.
