Bangladesh investors and police clash over stocks slide

[CaPtAiN_pLaNeT]

Bangladesh investors and police clash over stocks slide

Bangladesh investors and police clash over stocks slide | Top News | Reuters

Sun Feb 13, 2011 8:08am EST

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By Serajul Islam Quadir

DHAKA (Reuters) - Hundreds of Bangladeshi small investors, angry at a new plunge in share prices, set fire to tires and pelted police with bricks on Sunday outside the stock exchange and demanded the resignation of the finance minister.

Police with batons dispersed the protesters in pitched battles that snarled traffic for hours.

The country's main Dhaka Stock Exchange General Index dived by more than 474.77 points or 7.27 percent to 6052.41 on Sunday, the steepest one-day fall since January 20.

"Who is to blame for the continuing fall of share prices? Why haven't they been found and punished?" shouted Shafiqur Rahman, a small investor.

Demonstrators called for the resignation of Finance Minister Abul Maal Abdul Muhith.

"He assured us that the market will see an uptrend this week," said investor Rakibul Haq. "It makes me so frustrated and angry that this has not happened."

Prime Minister Sheikh Hasina last week asked the relevant authorities to take immediate steps to stabilize markets, with about 3.3 million people, mostly small-time investors new to stock trading, relying on it to supplement meager incomes.

Share prices nearly doubled in 2010, encouraging new investors into the market.

But banks and other financial institutions, some of which had invested 75 percent of their deposits in the stock market in the past, are now holding back on further investments, prompting fears among individual investors.

Clashes between distraught investors and police have become regular occurrences in recent weeks. The steepest fall in the index -- 660 points -- took place on January 10.

Mirza Azizul Islam, a former finance adviser to the government, said on Sunday: "The market needs long-term investment to overcome its volatility while small investors should refrain from panic buying or selling."

Hasina and her rival Begum Khaleda Zia, a former prime minister and contender in parliamentary elections due by the end of 2013, accuse each other of prompting the price declines.

"They (Khaleda and her allies) are fuelling the unrest in the stock market, trying to cause greater anarchy and make gains out of it," Hasina told parliament last week.

Khaleda said at the weekend that the slide in the bourses was further proof that the government was incapable of managing anything.

(Writing by Anis Ahmed; Editing by Ronald Popeski)

 

[Md Akmal]

@ What to comment Sami !!! AL is like that from its existance. They do the corruption and blame goes to opponent political parties. In 1996 they did the same thing. At that time since they did not had enough money so they hired the Indian "Marwaries". Even Sk Rehana was directly invovlved on it.

@ AL has the tendency to always blame to the opponent. From 1971 till 1975 they blame Pakistan for each and every action. Pakistanis had looted everything, they have destroyed our bridges, they have raped 2 lacs of women and killed 30 lac. All these are bulshit.

 

[Gonjo]

The Investors are supposed to hold their stocks for the time being. Why the heck they sell to lose money. The market was definitely over inflated by the gamblers. Everyone knew, AL will do the same as did on 96-2001 period. haven't we took lesson from that?

Blaming on the illeterate investors should also be there.

 

[desioptimist]

Why would one strike because of stock market crash? What can govt do, or anybody do, if market crashes?

 

[Gonjo]

I dont know, from where on earth the AL is assuring people about saving their investment. No govt can save it from more collapsing, nowhere on earth any govt were able to prevent from collapsing stock market. They could have restrict inflating situation on DSE/CSE's, rather did let the gamblers playing safely.

 

[idune]

I dont know, from where on earth the AL is assuring people about saving their investment. No govt can save it from more collapsing, nowhere on earth any govt were able to prevent from collapsing stock market. They could have restrict inflating situation on DSE/CSE's, rather did let the gamblers playing safely.

Your statement is not completely correct. There are plenty of examples and ways govt can and usually support stock market. Just for an example when US market crashed US govt and treasury went all out to shore up money supply and banks. US govt even shares of differents companies and banks. And Bangladesh market is also starved with cash fund and confidence.

This is not market correction this is crash. Market is oversold now and in previous thread I have posted specifics on how govt using Bangladesh Bank triggered the crash. And Awami MP Lotus Kamal who head finance committee of JS last week said market will fall 2000-3000 points, that is throwing oil in fire of a crashing market. As a result market lost more than 1000 points last week alone. Then Rehman Sobhan who was advisor to Sheikh Mujib said Bangladesh stock market is like casino and that further pushed market collapse yesterday, losing another 500 points.
From thesse statements it become clear that Awami minister, govornor, businessman have orchestraed this collapse and doing it very planned way.

Have you been following Bangladesh stock market? If not I suggest you do so to learn how Salman F Rahman made millions by manipulating different stock including IFIC and United air share. And how he schemed money with IPO scam for GMG air.

How CMCKAMAL share own by Awami MP Lotus Kamal increased 762% over last 2 years and selling at PE of 199. That is insane.

How Azam J chowdhury schemed close to thousand crore taka using IPO scam. And this is same Azam J. Chowdhury who owns east cost group and bribed Hasina.

List goes on for all Awami leaders and and business man scammed money from market while Bangladesh bank and finance minister let that happened. But now that Awami league looting is done Bangladesh bank govornor Atiur Rahman and FM Muhit is talking about irrationality.