One percent falls in stock market everyday 

The street seems flooded with blood of the bulls. Their war against sell pressure looks too helpless. 

Until the fresh round of downturn in the new year, they had believed that the growing economy and its drivers would not allow the devastation further. 

But the reality is, following a 13.8 percent fall in 2018 and 17.3 percent fall in 2019 the key benchmark at the Dhaka Stock Exchange (DSE) has lost 9.4 percent within the first 10 working days of January. 

A scary average one percent falls every day. 

On Tuesday, DSEX, the broad-based index at the capital city bourse, lost another 88 points or 2.1 percent. 

The intraday fall at a certain point crossed 100 points and later closed at 4,036, which was near 6,000 mark a year ago. 

The surprise, frustration and angers 

 "We were neither too optimistic about the situation 2020, nor that cautious about the pace and sharpness of fall. It is insane, and heartbreaking. We are destroyed financially," Mashuk Ahmed (58), a stock investor expressed his frustration on the trading floor. 

"Seems the market and the economic system has no drivers or guardians who might come up to save the market." he added.

Even, in the first two weeks this is already the worst January after 2012. 

Over Tk one lakh crore of market capitalisation eroded from the DSE in less than one year and the hardest hit is taken by everybody engaged with the stock market. 

"I am not a speculator, I hold companies with good fundamentals and corporate governance. I am losing a large portion of my savings, it is an unusual scenario, " claimed Mashuk, the financially literate investor.

A top investment banker expressed his anger about the securities regulator as they are forcing his team not to sell stocks. 

They might try to help reduce the sell pressure in the market applying a non-market technique. But the reality is it did not help. 

"The regulatory officials rather committed an injustice with my clients who could save a portion of their portfolio if they were allowed to sell. 

Foreigners are still selling stocks, regardless fundamentals, why not locals?"

The "who is responsible?" debate   

A debate is getting louder on, "which is contributing more to the sharpest market fall after 2012 -- stock market's own problems that everybody has been discussing for years, or the wider economic outlook especially the money market and banking sector?" 

Whatever the answer is, investors are witnessing dooms days every day. 

Faruq Ahmad Siddiqui, former chairman of the Securities and Exchange Commission (SEC) thinks the stock market fall is a consequence of both the discussed issues. 

The market is suffering from governance issues within capital market and the fall is also a consequence of money market and banking sector problems.

"Stock market lacks the governance within, and the banking sector too." 

Shibli Rubayat Ul Islam, a professor of Banking and finance at the University of Dhaka told the Business Standard that the main problem is with money market liquidity management and the ongoing move to limit interest rate is going to be imposed at a time when banking sector is already struggling with so many problems like mounting up non performing loans, and a poor governance. 

The Bangladesh Banks should focus on a better liquidity management, said the Dean of the university's faculty of Business Studies. 

If banking sector and the money market issues are resolved, stock market problems will not be too tough to solve, he believes. 

Khondkar Ibrahim Khaled, a former deputy governor of Bangladesh Bank and also the head of the inquiry committee formed after 2010 stock market crash said, stocks are suffering because investors have no confidence on the market and its regulators and leaders, the same unwanted people are still acting to run the market. 

Confidence is lost when they see accused people in charge everywhere. Some top names in our enquiry finding seems leading a wider part of the financial system now. 

He also suggested a complete an immediate overhaul of the BSEC as its leaders failed to regulate the market. 

Responses from responsible offices 

The Bangladesh Bank and the Ministry of Finance now seem to give an ear to his frustration as the central bank governor has assured Dhaka Chamber leaders of accepting the most effective one among the stakeholders' proposals to support stock market.

Ashadul Islam, the Senior Secretary for the Financial Institution Division told the representatives of investment bankers on Tuesday that they have verbally ordered state owned banks to invest in stocks until regulatory threshold. 

Also the central bank is requested to figure out ways to bring private sector banks back to the capital market investing. 

The BSEC has called a meeting with the market intermediaries on Wednesday morning.