Capital markets collapse after record fines

The capital market of the country collapsed on the working day after a record fine was imposed on 9 individuals and institutions for manipulation of shares.

On Wednesday (October 2), the major capital markets Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) were traded with a big decline. Out of 398 companies whose shares and mutual fund units were traded on DSE, the price of 347 decreased.

Dhaka Stock Exchange (DSE)

All indices fell on DSE on Wednesday. The main index DSEX decreased by 132.29 points and DSES index by 32.51 points to 5 thousand 453.99 points and 1 thousand 219.70 points respectively. And the value of DS-30 index decreased by 51.32 points. The index stands at 1,988.01 points.

However, the volume of transactions has increased in DSE on this day. Shares worth Tk 440 crore 83 lakh have been traded. And on the last working day, shares of Tk 389 crore 47 lakh were traded in DSE. The transaction increased by 51 crore 36 lakh taka.

Shares of 398 companies and units of mutual funds were traded on DSE on Wednesday. Among them, the prices of 29 companies increased, 347 companies decreased and 22 companies‍‍` share prices remained unchanged.

Chittagong Stock Exchange (CSE)

On the other hand, CSE, the other stock market of the country, also decreased the value of all indices on Wednesday. CASPI index decreased by 306.17 points and CSCX index by 187.23 points to 15 thousand 291.03 points and 9 thousand 284.61 points.

And CSE-50 index decreased by 23.87 points and CSI index by 21.20 points to 1 thousand 158.07 points and 994.77 points respectively. Besides, the CSE-30 index has decreased by 254.39 points to 12 thousand 454.80 points.

However, the volume of transactions has increased in CSE on this day. 5 crores 96 lakhs have been transacted. Shares worth Tk 5 crore 89 lakh were traded on the previous working day. The transaction increased by 7 lakh rupees.

Shares of 216 companies and units of mutual funds were traded on CSE. Among them, the share prices of 24 companies increased, 177 companies decreased and 15 companies remained unchanged.

Also read: Beximco share violation, Tk 428 crore fine

Before this, the regulatory body Bangladesh Securities and Exchange Commission (BSEC) decided to fine 9 individuals and organizations a record 428 million 52 million taka yesterday on Tuesday for manipulating the shares of Beximco on October 1.

Among the individuals and institutions fined 30 crores to Marzana Rahman, 4 crores 1 lakhs to Trade Next International, 125 crores to Mushfiqur Rahman, 58 crores to Mumtazur Rahman, 22 crores 50 lakhs to Jupiter Business, 15 crores 1 lakhs to Apollo Trading, 70 crores to ART International, Abdur Rauf was fined Tk 31 crore, Crescent Limited Tk 73 crore.

In this situation, trading in the capital market started by reducing the prices of shares and units of almost all companies. As a result, the index fell sharply at the start of trading. As the trading time increases, the level of this price drop increases. As a result, the day‍‍`s trading ended with a collapse.