Stocks edge down, turnover drops 32%

The daily turnover at the DSE also dropped significantly, falling by 32% to Tk726 crore

Stocks on the Dhaka Stock Exchange (DSE) edged down for the second consecutive session yesterday, as selling pressure intensified amid ongoing tensions over the appointment of independent directors to the bourse’s board. 

The daily turnover at the DSE also dropped significantly, falling by 32% to Tk726 crore.

The DSE’s benchmark index lost 17 points, closing at 5,784, while the DS30, an index of blue-chip stocks, slightly declined to 2,133 points. 

Similarly, the Chittagong Stock Exchange (CSE) also ended the day in the red, with its general index CSCX falling by 52 points to 9,949 and the all-share price index CASPI dropping 91 points to close at 16,501.

Market insiders said investors were adopting a wait-and-see position as a conflict arose between the securities regulator and the DSE regarding the appointment of independent directors to the bourse’s board. 

They added that the regulator appointed independent directors while ignoring the DSE’s proposal, raising concerns about the regulator’s authoritarian behaviour. 

This situation has unsettled investor sentiment, discouraging them from investing, they noted.

DSE shareholder director Shakil Rizvi told The Business Standard on Monday afternoon, “We have been hearing the frustration of DSE shareholders as they had no say in the appointment of independent directors.”

While no one questioned the qualifications of the Bangladesh Securities and Exchange Commission appointed independent directors, the issue lies in the fact that the owners of the exchange company felt completely ignored, he added.

“It is unfortunate that the post-revolution regulator behaved in an even more authoritarian manner by completely ignoring the owners of the bourse,” DSE Brokers Association (DBA) President Saiful Islam told TBS.

“We understand that the situation is unusual, but there would have been no problem if decisions were made based on an amicable consensus, which the BSEC did not consider,” he added.